Rotate the textures used in deformbytexture, or perhaps the different colour channels in deformbytexture represent different directions, in which case recolour your texture
Write a pixel shader (Use GourandDirectional as a start)
Apply your texture to a Grid and see it appear in your render window. Add a tex2D function into the pixel shader before the tex2D that’s alrady there. Use the existing texture co-ordinates on the existing tex2D. Add the sampled alpha value * an arbitrary amplitude to the texcd.x variable. Then when the tex is sampled a second time (i.e. to the screen) then you’ll have a displaced texture