Using the code snippet from above; the alpha channel in your TGA file is what will determine the blending amounts and where. You need to more or less paint that info on the alpha channel. If you open up your TGA in photoshop or whatever, and the alphachannel is all black then just paint some white stripes or something on the alpha channel and see what happens.

Did you add a fallback technique that was posted by ventilator in this thread?? Reason I ask, if your card does not support the PS/VS or there is in error in the pass it will drop to the fallback technique. Which will just show the entSkin1 texture on the terrain.

What is the card you are using??

Eric