Update: This works beautifully, especially if I put a "distant" terrain model in a layer between the camera and the sky (great illusion of scale for big, big mountains).

However (totally new issue, but i'll keep it in this thread because I'm dealing with the same outcome, if a bit expanded), I want to be able to set the file references per level, so that one level may have a different sky/distant terrain/etc from another. I suppose I could set it in the level script, but that hasn't worked for me (can a level script execute a main() function? if not, how do I work around this?)

Alternatively, I could use an external text file. This way, i could have all of my level variables set, as well as read an array of .hmp files for a LOD terrain system (load terrain in the camera view, with array entries corresponding to a 'geographic' location in order to load terrain and objects dynamically based on the location of the camera. [LOD similar to, say, Oblivion]). Thoughts? Experiences? Which is more practical?