Thanks for the replies, tempted me to continue the project again

@Cowabanga: Thanks for the link, another reason to continue the project again...
I tried to use texture projector from XD1v0(man, your name is really hard to remember) applied to the level but it kills the frame rate.
Maybe I'll have to use model instead of level, since level doesnt support LOD(so I can use normal vertex lightning but dynamic resolution)...