I suppose if the earth were as smooth as a billiard ball, a small amoutnt of water might cover it.
But wait, the earth is actually smoother than a billiard ball, and water doesn't cover it.
As for your observation of deposits lifted and moved, that's generally the work of glaciers. If you are interested in stuff like that you might try studying geology.
Yep those Rockies sure are smooth.
Just an FYI:
http://www.newton.dep.anl.gov/askasci/env99/env300.htm
Disclaimer: I have not run the numbers myself to verify this.