I just tested it, and got it working perfectly after the following changes:

A) Changed ps.1.3 to ps.1.1
B) Changed all "texSkin"'s to "entSkin"'s.
C) Changed:
lrp r0.rgb,t2.a,t0,t1 // blend t0 with t1 using the alpha channel of t2
into:
mov r1,t1
lrp r0.rgb,t2.a,t0,r1 // blend t0 with t1 using the alpha channel of t2
D) Changed my terrains skills 41~44 to float(10) rather than just 10. heh, forgot that the first time >.<


I must say, this shader is awesome! Makes terrain look MUCH nicer.