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1. What are the roads made of-- MDL?



Yes, they made of MDL.

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2. Will the height adjustment part of the tool automatically lift/grade a terrain to match the road?




Yes, this is also planned

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3. If the road is polymesh/MDL geometry, is it be "baked" into a solid piece of geometry which sits on top of the terrain, so that it could be later used by the ABT scene manager or vent's awesome MDL shadow mapper, or is it dynamically regenerated with each level load?




In the editor itself it is dynamically gerenerated with each level load because of editing it after level reload. If you use the "export-function" there will be generated a solid mesh that you can load in MED oder so something else with it.

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oliver, will icex 2.0 work with a7? or will it be abandoned and only support a6.3?




I can't say anything about IceX 2 and A7 at the moment.


Here is a new screen with height-adjustment: