I ran into the same problem (and I searched).
I found that in the gamestudio documentation it
talks about a terrain blending shader that comes with
the engine. (go to gamestudio help, then search for
terrain)

I think the documentation was lacking, but since I know
shaders and the gamestudio enviornment, I was able to
figure it out.

if you can't figure it out, I can email you
a little. It is DEFINATELY worth it! I was using
T.ed (the terrain editor), and was blurry. When
I got this shader working, WOW! It looked better than
I would ever want!


-jimc74
jimowencassidy74@yahoo.com