Here is the (2) texture version of the old code redone.

BTW: If you want to utilize HLSL, for more flexibility, then you can
modify code in this thread here.

Code:

---

 
///////////////////////////////////////////////////////////
//	FFP  Terrain MultiTexturing Effect
//
//	Blending (2) Textures
//
//	By:  Eric A. Hendrickson-Lambert (Steempipe)
//
//
//	1/6/05: Update original code for MK_1
//	        to build with A6.31.4 & DX9.00c
//	
//////////////////////////////////////////////////////////


//*****************************************************
//**  I had strange results with putting the alphamaps
//**  in to the HMP as entSkins.  
//**  Just load them as mtlSkins.
//*****************************************************

// RGB Channels are blank
// The A channel has the blending weight (pattern)
bmap blendmap = <blendmap.tga>;		// Blender for Pass p1


//*****************************************************
//**  entSkins 1-4 are tilable textures 
//**  Be sure to add mipmaps to them in MED
//*****************************************************


var Detail_Size = 0;


function mtl_terraintex_init()
{

bmap_to_mipmap(mtl.skin1);


//
// Adjust the texture transform to do some tiling of the textures
//

mtl.matrix11 = float(28);	// default u scale 
mtl.matrix22 = float(28);	// default v scale

}

///////////////////////////////////////////////////////////////////////
//The Material
///////////////////////////////////////////////////////////////////////

material mat_terraintex
{

skin1 = blendmap; 
   


// define a material effect string
     
event = mtl_terraintex_init;
  	
	effect = 
	"
    	matrix matMtl;
               	
       	texture mtlSkin1;	// Blending map for Pass P1
	
	texture entSkin1;	// Tileable Tex
	texture entSkin2;	// Tileable Tex
	
       
	
   
///////////////////////////////////////////////////////////////////////
//The Technique
///////////////////////////////////////////////////////////////////////

technique ffp_terrain_tex
       	{
         	pass P0
		//////////////////////////////////////////////////////
		//// Lets lay the first texture down.  no alpha work
		//////////////////////////////////////////////////////
         	{
        		
            		AlphaBlendEnable=False;
			AlphaTestEnable=False;
				
			Lighting = True;

			zEnable=True;
			zWriteEnable=True;
			
			////////////////////////////////////////
			// Stage 0
			///////////////////////////////////////

        		Texture[0] = <entSkin1>;	

            		magFilter[0]=linear;
			minFilter[0]=linear;
			mipFilter[0]=linear;
			
       			TextureTransformFlags[0] = Count2;
       			TextureTransform[0] = <matMtl>;
			texcoordindex[0]=1;

           		ColorArg1[0] = Texture; 
           		ColorOp[0] = Modulate;
            		ColorArg2[0] = Diffuse;
		       	AlphaOp[0]=Disable;
			
			//////////////////////////////////////
			//stage 1
			//////////////////////////////////////

			ColorOp[1]=Disable;
			AlphaOp[1]=Disable;
           
        	}

		pass P1
		//////////////////////////////////////////////////////
		//// Now we blend another texture using an alphamap
		//////////////////////////////////////////////////////
         	{
        					
			//////////////////////////////////////
			// Stage 0
			//////////////////////////////////////            		

			// We need to enable alphablending 
			
			AlphaBlendEnable=True;
			SrcBlend=SrcAlpha;
			DestBlend=InvSrcAlpha;
			
			zEnable=False;
			zWriteEnable=False;

			Texture[0] = <mtlSkin1>;

            		magFilter[0]=Linear;
			minFilter[0]=Linear;
			mipFilter[0]=Linear;
			
			//
			// We don't want the alphamap to tile
			//
       			TextureTransformFlags[0] = disable;
       			
			TexCoordIndex[0]=0;	
		
           		ColorArg1[0] = Current; 
           		ColorOp[0] = SelectArg1;
            		AlphaArg1[0] = Texture;
                	AlphaOp[0]=SelectArg1;

			//////////////////////////////////////////////
			// Stage 1
			//////////////////////////////////////////////

			Texture[1] = <entSkin2>;
			
			zEnable=True;
			zWriteEnable=True;

           		magFilter[1]=Linear;
			minFilter[1]=Linear;
			mipFilter[1]=Linear;
			
	
	       		TextureTransformFlags[1] = Count2;
       			TextureTransform[1] = <matMtl>;
			TexCoordIndex[1]=1;

	           	ColorArg1[1] = Texture; 
        	   	ColorOp[1] = Modulate;
            		AlphaArg1[1] = Current;
                	AlphaOp[1]=Disable;
		
			///////////////////////////////////////////////
			// Stage 2
			///////////////////////////////////////////////
			ColorOp[2]=Disable;
			AlphaOp[2]=Disable;
			
           
        	}

         	

     	 } // End of Technique

   "; // end of the effect string

} // End of Material 


///////////////////////////////////////////////////////////////////////
//The Action we assign in WED
///////////////////////////////////////////////////////////////////////

action ffp_TerrainTex
{
	my.transparent=off;
	my.material = mat_terraintex;
	

}

---