@eminent:

You may download my modifications here,
Check that and then we can discuss, but in short:

• Your chopped hills are the effect of you painting large areas in same color. You must use a smoothed brush with blurred edges. Either paint your modification using the L3DT Desing Map (recommended) or use smoothed brushes carefully in any external paint program.
  
  
• In L3DT your horiszontal scale is 640 meter. Way to high. Make it 0.5m and rasie your X and Y values, then you will have more resolution to work width in Design Map
  
  
• You have som cliffsides that are almost 90 degress. To steep cliffsides will create texture distortion. Use a smooth terrain and add any steep cliffsides as models.
  

Here is the result inside MED after my modifications.


Kindly
~Roland