Well visually it has improved, the z-sorting errors are gone too, which makes it look way better

The house is better qua form but I've seen that you've added bump mapping on almost everything but what especially weird was the bump mapping effect you've added to the house. It's strange or even a bug I might say because the effect dissapears when the user is located at a sertain amount of quants away from the house. You could have done this with perpuse to increase the framerate but I wouldn't advice you to do so because the engine will automatically increase the framerate by using LOD element on outdoor environments. Besides that, you've might not noticed this so I would call it a bug if it isn't an effect you've tried to achieve. The movement of grass and the leaves of the tree should be included like you did in the previous version to increase the realistic view but that is off course your call but mind that when attaching this to the leaves, it's only ment for the leaves and not for the entire tree

The sun rays are nice like I've mentioned before but how can they appear when the sun isn't located a their starting position high in the sky

?? I guess you just have to redefine the sun's position ^^ I would also point out the non-natural feeling of your jump once again, maybe try and work on that too, aswell as the height of the jump because once in the cave, the user is able to jump through the top of the cave

Or you could just make the top of the cave abit heigher. The cave I'm not going to comment on, I'll let you work on that since your first level is +- finished.
Btw, sorry for the eyecancer reading but constructive comment is a great way to help other people/users increase the value of their project

!!
Cheers
Frazzle