Regarding the role of water vapor in climate change, is the science settled?

The correct answer is "no".

One excerpt from this article:

...When they tracked the daily evolution of a composite of fifteen of the strongest intraseasonal oscillations they found that although rainfall and air temperatures would be rising, the amount of infrared energy being trapped by the cloudy areas would start to decrease rapidly as the air warmed. This unexpected behavior was traced to the decrease in cirrus cloud cover.

The new results raise questions about some current theories regarding precipitation, clouds and the efficiency with which weather systems convert water vapor into rainfall. These are significant issues in the global warming debate.

"Global warming theory says warming will generally be accompanied by more rainfall," [Dr. Roy Spencer, a principal research scientist in UAHuntsville's Earth System Science Center] said. "Everyone just assumed that more rainfall means more high altitude clouds. That would be your first guess and, since we didn't have any data to suggest otherwise ..."

There are significant gaps in the scientific understanding of precipitation systems and their interactions with the climate, he said. "At least 80 percent of the Earth's natural greenhouse effect is due to water vapor and clouds, and those are largely under the control of precipitation systems.

"Until we understand how precipitation systems change with warming, I don't believe we can know how much of our current warming is manmade. Without that knowledge, we can't predict future climate change with any degree of certainty."

A related article is here.

One excerpt:

According to Vladimir Shaidurov of the Russian Academy of Sciences, the apparent rise in average global temperature recorded by scientists over the last hundred years or so could be due to atmospheric changes that are not connected to human emissions of carbon dioxide from the burning of natural gas and oil. Shaidurov explained how changes in the amount of ice crystals at high altitude could damage the layer of thin, high altitude clouds found in the mesosphere that reduce the amount of warming solar radiation reaching the earth's surface.

Shaidurov has used a detailed analysis of the mean temperature change by year for the last 140 years and explains that there was a slight decrease in temperature until the early twentieth century. This flies in the face of current global warming theories that blame a rise in temperature on rising carbon dioxide emissions since the start of the industrial revolution. Shaidurov, however, suggests that the rise, which began between 1906 and 1909, could have had a very different cause, which he believes was the massive Tunguska Event, which rocked a remote part of Siberia, northwest of Lake Baikal on the 30th June 1908.

Another related article is here (PDF).

An excerpt:

EXTREME variations in local weather and the seasons make it easy for people to mutter “greenhouse effect”, and blame everything on carbon dioxide. Along with other man-made gases, such as methane, carbon dioxide has received a bad press for many years and is uniformly cited as the major cause of the greenhouse effect. This is simply not correct. While increases in carbon dioxide may be the source of an enhanced greenhouse effect, and therefore global warming, the role of the most vital molecule in our atmosphere – water – is rarely discussed. Indeed, water barely rates a mention in the hundreds of pages of the 2001 report by the Intergovernmental Panel on Climate Change.

Many aspects of the seemingly simple water molecule conspire to make it difficult to model its effect on our climate. Unlike most other atmospheric gases, the distribution of water in the atmosphere varies strongly with time, location and altitude...