1.) Create an area you want to be Lava
2.) Make it a func_water entity
3.) right click on the object go properties
4.) At the bottom of the list there is a tab called contents
5.) Select Lava
To make the Waves right click on the Func-Water or Lava go properties and at the bottom is Wave hight.
As for the texture. I think Zero made it and i don't think he has it so you can use his textures. So go ahead and try to make your own.
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