quote:

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lod1, lod2, lod3
These parameters control the discrete geometric levels of detail - LOD - of an entity. LODs are
used for increasing the frame rate. The rendering of a detailed model with several thousands of
polygons looks quite good when the model is close to the camera. However when the same
model is far from the eye point, details are less noticeably. A simpler model with few polygons
will look just as good in that situation, but render faster. The difference in rendering speed is
quite remarkable in huge outside levels where lots of entities are visible, like trees in a wood, or
an ork army, or a city made from house map entities.

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Look at manual page 90/91

and look at this

http://www.conitec.net/ubb/ultimatebb.php?ubb=get_topic&f=14&t=000247