Hi

I created a hollow cube around my game level which i use for the sky, i applied the sky texture and it works fine except when i get higher off the floor on my game world the part of the sky at the bottom blurs and warps like a messy oil painting :S

can anyone offer any help please??

Thank you.

Well, you have several ways to workaround that problem. My advice is to use a skysphere with a sky texture surrounded by the hollow block, you can find a good example in the AU resources link in the main page, under demos called Outdoor by lennart , just an example.
Another possibility its to render a high quality sky texture in a program like Terragen and save it as sky+6.tga for example and use it in the sky cube. There are tutorials about that matter, just search them in the forum .
I hope it helps.

BTW: search for Steempipe´s Whitepapers tutorials.