Here's the code for your wdl:

// Change the textures to your own
bmap cementcolour = <cement.bmp>;
bmap cementDOT32 = <cementDOT3.tga>;
bmap cementheightmap = <cementh.bmp>;

material cement // Your wad texture name
{
skin1 = cementcolour;
skin2 = cementDOT32;
skin3 = cementheightmap;
flags = tangent;
}

starter load_shaders()
{
d3d_automaterial=1;

effect_load(cement,"parallax.fx"); // wad texture name at beginning of brackets
}



Your Parallax.fx file:



float4x4 matWorldViewProj;
float4x4 matWorld;
float4x4 matViewInv;

float3x3 WldToTan;

float4 vecViewPos;
float4 vecViewDir;

float4 vecLight;
float4 vecLightPos[8];
float4 vecLightColor[8];

texture entSkin1;
texture mtlSkin2;
texture mtlSkin3;

sampler sColorMap = sampler_state
{
Texture = <entSkin1>;
MinFilter = Linear;
MagFilter = Linear;
MipFilter = Linear;
AddressU = Wrap;
AddressV = Wrap;
};


sampler sBumpMap = sampler_state
{
Texture = <mtlSkin2>;
MinFilter = Linear;
MagFilter = Linear;
MipFilter = Linear;
AddressU = Wrap;
AddressV = Wrap;
};


sampler sHeightMap = sampler_state
{
Texture = <mtlSkin3>;
MinFilter = Linear;
MagFilter = Linear;
MipFilter = Linear;
AddressU = Wrap;
AddressV = Wrap;
};



struct VS_OUTPUT
{
float4 oPosition : POSITION;
float2 Tex : TEXCOORD0;
float3 Light1 : TEXCOORD2;
float3 View1 : TEXCOORD3;
float3 Att1 : TEXCOORD4;

float3 Light2 : TEXCOORD5;
float3 View2 : TEXCOORD6;
float3 Att2 : TEXCOORD7;
};


VS_OUTPUT main_vs(float4 inPosition : POSITION, float2 inTex : TEXCOORD0, float3 inNormal : NORMAL, float3 inTangent : TEXCOORD2 )
{
VS_OUTPUT Out ;

Out.oPosition = mul(inPosition, matWorldViewProj);

WldToTan[0] = mul(inTangent, matWorld);
WldToTan[1] = mul(cross(inTangent, inNormal), matWorld);
WldToTan[2] = mul(inNormal, matWorld);

Out.Tex = inTex.xy * 1.5; //Scale the texture UV's


float4 Pos_World = mul( inPosition, matWorld);

float LightRange1 = 0.003;
float LightRange2 = 0.003;

//light 1
float3 Light1 = Pos_World - vecLightPos[1];
Out.Light1.xyz = mul(WldToTan, -Light1);

float3 Viewer1 = Pos_World - vecViewDir;
Out.View1.xzy = mul(WldToTan, -Viewer1);

Out.Att1 = Light1 * LightRange1;
//light 2
float3 Light2 = Pos_World - vecLightPos[2];
Out.Light2.xyz = mul(WldToTan, -Light2);

float3 Viewer2 = Pos_World - vecViewDir;
Out.View2.xzy = mul(WldToTan, -Viewer2);

Out.Att2 = Light2 * LightRange2;

return Out;
}

struct PS_INPUT0
{
float2 Tex : TEXCOORD0;
float3 Light1 : TEXCOORD2;
float3 View1 : TEXCOORD3;
float3 Att1 : TEXCOORD4;
float3 Light2 : TEXCOORD5;
float3 View2 : TEXCOORD6;
float3 Att2 : TEXCOORD7;

};

float4 main_ps(PS_INPUT0 IN): COLOR
{
const float HeightScale = {0.030000f};
const float BiasFilter = {0.025000f};



float3 ViewDir = normalize(IN.View1);
float4 color;
float3 bumpNormal;

float Height = HeightScale * tex2D(sHeightMap, IN.Tex) - BiasFilter;
float2 OffsetTex = Height * ViewDir + IN.Tex;
color = tex2D(sColorMap, OffsetTex);
bumpNormal =(2 * (tex2D(sBumpMap, OffsetTex )))- 1.0;
float4 gloss = tex2D( sBumpMap, OffsetTex);

//light1
float3 LightDir1 = normalize(IN.Light1);
float3 ViewDir1 = normalize(IN.View1);
float4 diff1 = saturate(dot(bumpNormal, LightDir1));
float shadow1 = saturate(2 * diff1);
float3 Reflect1 = normalize(2 * diff1 * bumpNormal - LightDir1);
float4 spec1 = pow(saturate(dot(Reflect1, ViewDir1)), 8);
float4 Attenuation1 = saturate(dot(IN.Att1, IN.Att1));

//light2
float3 LightDir2 = normalize(IN.Light2);
float3 ViewDir2 = normalize(IN.View2);
float4 diff2 = saturate(dot(bumpNormal, LightDir2));
float shadow2 = saturate(2 * diff2);
float3 Reflect2 = normalize(2 * diff2 * bumpNormal - LightDir2);
float4 spec2 = pow(saturate(dot(Reflect2,ViewDir2)), 8);
float4 Attenuation2 = saturate(dot(IN.Att2, IN.Att2));

return (
(0.2 * color) + //ambient
((shadow1 * (color * diff1 + (spec1)) * (1 -Attenuation1))*vecLightColor[1])+
((shadow2 * (color * diff2 + (spec2)) * (1 -Attenuation2))*vecLightColor[2])
);

//return (0.2 * color + color* diff1 * vecLightColor[1]+diff2 * vecLightColor[2]);

}


technique Parallax
{
pass P0
{

VertexShader = compile vs_2_0 main_vs();
PixelShader = compile ps_2_0 main_ps();
}
}



I usually make these things into demos, so one should be available shortly

Parallax Mapping is the effect used on levels to make them look more detailed, its a more complex effect than normal mapping and you can see it in games and engines such as Elder Scrolls Oblivion and the Unreal 3.0 Engine

Looks extremely awesome with moving dynamic lights lights

Enjoy,

Matt Coles