In reply to question one:
It is an illusion that you will stop in a short distance.
In reply to question two:
This is the Von Danniken Syndrome - lights, usually passed off as UFO's by the person the illusion is named after, are NEVER in focus enough to reveal what they truly are...ordinary lights
In all seriousness, I initially thought you were referring to mirage in Q1, but then you specify water. Could you be more specific in this question? A runway darkened by water is going to appear further awaythan it really is, and may generate an illusion of a high approach - may...
The second is likely scintillation as already mentioned. As an amatuer astronomer, we know all too well about "star twinkle" - caused by atmospheric pollution, spherical aberation (through ise crystals, as well as refraction and reflection), air density fluctuations, heat haze, heat shimmer, and humidity. It also depends on the position of the light relative to the horizon - atmospheric refraction will affect the perceived versus genuine position for a low altitude object.