Translation:I see a bottle of water between the bottles of wine.
"Tra" is an alternative form of "fra". When choosing one over the other you would want to choose one that avoids creating sentences with of identical sounds.
Here's an article I found helpful that might help you as well: http://italian.about.com/od/grammar/a/italian-preposition-tra.htm
My opinion on this "wine bottle" and "bottle of wine" issue is the following:
In english, I think "wine bottle" can stand for both "bottle of wine" and also "bottle for wine". I am pretty sure that italian language doesn't have such phrase.
Although, I am not sure if "bottiglia di vino" could stand for both as well. Anyone has an opinion on that?
The closest italian phrase that describes the bottle itself and doesn't reffer to what's inside of it would be "bottiglia per il vino". English equivalent is "bottle for wine".
So.. bottle of wine = bottiglia di vino, bottle for wine = bottiglia per il vino, wine bottle = ??? (depends on the context?)
Again, this is just my opinion, so feel free to reply in any way.
"di" means "of". "del vino" in Italian means "some wine". For example, the phrase "vorrei bere del vino" means "I would like to drink some wine". On the other hand, the phrase "vorrei bere un bicchiere di vino" means "I would like to drink a glass of wine". Because of the "some" meaning of "del", you must use "bottiglie di vino"
Must this be between? It seems to me that between is a specific position one bottle of water between two bottles of wine - one on each side. The image conjured by both this item and a similar one with candy and cookies looks more like the single bottle of water would be seen among several wine bottles. Could the sense of this be accurately stated "I see a bottle of water among the wine bottles"?
Traditionally bottles are made of glass, so they are glass bottles or bottles of glass, aren't they, but there are also bottles of porcelain or plastics. So there's a difference. I never saw a bottle of wine, but lots of bottles filled with wine, mostly glass bottles or let's say bottles of glass filled with wine. Hmmm....