You will need to set "polygon = on;" for models either by script or in WEDs
properties for the model, or else the bounding box will be rendered and not the
model! And if you forget to do this and then scale your model, the shadow of the
bounding box will be a small dot, since it dosent scale with the model.

Shadows of models with fine lines may be blurred out, so you may want to blur
them by hand in an image editing program. Also getting good results capturing
finer details like fence rails may reqire a higher resolution of your shadowmap.

To bake the shadows would depend on how you are texturing your terrain. If you
use one large texture per terrain, then in an image editor, you could invert
the shadowmap and use it as a mask on a black layer above your terrain layer.
Adjust the transparency of the layer, and then collapse them into a single image.

You could also use the existing ffp shader in the example or, modify it if you
are using a multi texture shader. The example shader tiles skin 1 but not skin 2
(the shadow map).

I have made fantastic results with sewn together terrains that each use just
one large texture that includes the shadowmap, and a detail mapping shader.

Sorry I didnt include better usage notes!