The demo is looking good so far, but there are something that could be improved, I'll step over the C&C step by step:
- The floating grass is probably a minor problem to solve. If you've used a map to give the grass a predefined position with a random orientation in the field, try adding a trace to check the grass distance related to the ground distance and subtract the value between the both which in other words means gravity ^^ When you didn't used a map to calculate this, you've probably lined out the grass models/sprites manually in WED which makes the problem even easier. My thought about it is that you've had a moment of inattentive thinking while setting up the grass manually
- The walking through element is caused by setting the passable flag to yes, which is even easier to solve.
- The textures are sometimes abit blurry but I don't blame your team for this, performance needs to be stable enough to carry out a decent framerate.
- The jumping is good but feels unnatural
- One of the rocks is invisible but I think you know how to change that. You may have done this with a sertain intention to test something which I can't tell of course
- The step sound is good aswell but when I jump, I don't hear any sound when landing.
- In overal, nice job and the normal map on the rocks and the house gives it a good feeling in nature. The light rays are good extra, it completes the feeling of nature
Srr for the load of comment but mind it's all with a constructive reason
Cheers
Frazzle
so here is the 
