First I wanna congratz you two for the nice demo !!
Sec, the water shader isn't working but I've had the latest update with DX9.
And last but not least my C&C:
Plus points:

• the graphics are nice
  
• the idea and creativity I found in the level is from a very high level
  
• the bee and the hive is nicely modeled, as well as the rest of the models
  

Work points

• the texture are some times blurry but I know that when you higher up the resolution of it so let's say you're using a 512x512 now and you make it a 1024x1024 the FPS will be affected with a relative frame drop. I'm saying relative because I don't know which texture size you're using.
  
• the controls are sometimes abit hard after the bee did a 90-180 degrees turn.
  
• the speed is to slow as EX Citer mentioned, the race mode would be more attractive if the bee could speed up to let's say 50 mph. A panel showing the current speed would be a nice extra.
  

Besides all that, fantastic work !! Can't wait to see more of this
Btw, for my spec, look at my sign.

Cheers

Frazzle