You only need say 3/4 out of the water, more in most cases wont hurt. Basically you dont want water to flow over the top of it when running.
As for the wave. Make sure you have the 24v setting as well as the white dial turned to full speed. If a question unplug the controller and test dial with hand in front of pump. Set the dial to the most counterclockwise setting, this will be the fastest pulse. Now turn the dial slowly to the right in tiny increments. I always say if you see the dial move you went too far... give maybe 10-15 seconds to see if a wave is starting between moves. At some point you will see it begin, and if it dies out afterwards you likely went past the setting so dial it back just a touch.
