Perhaps you may check out my Neomill Project "Tradmill" script in the C-Script/WDL section. Its written in C-Script/wld but rather simple and should be understood easily and could be translated into Lite C quickly.

Once you understood how the Neomill treadmill script works you could improve the scipt building your own LOD Lite-C script for terrain tiles.

You may need to change the 9 Tile Treadmill into a 16 tile treadmill or with even more tiles.

Let the tiles far away from you loaded in as simple low poly mdls or hmps and the terrain you are on or nearby in high poly quality.

The only disadvantage of my scripted mill is that all tiles must be files and therefor are visible for the Gamer.

Anyway, check ouut it if you haven't alread. It can be downloaded from the acknex resourece download section (code section)

Greets

J. Hunke