What he means is, that you should copy your code into a new file and save it as (for example) shader.fx ...

Code:

---

 ///////////////////////////////////////////////////////////

//	FFP  Terrain MultiTexturing Effect

//

//	By:  Eric A. Hendrickson-Lambert (Steempipe)

//

//	Rev. 04.05.04.1  

//

//	Description:

//	Using 2 tileable textures and an alphamap for blending.  

//	This code uses (2) passes because more than 2 stages would be needed

//	for 1 pass.  The First Fallback Technique is just a 2 stage 1 pass but

//	has the transformation.  The second fallback has no transformation.

//

//////////////////////////////////////////////////////////





// A tileable texture

//bmap grass = <tilegrass.bmp>;





//RGB Channels are blank

//The A channel has the blending weight (pattern)

bmap blendmap = <blendme.tga>;



// A tileable texture		

//bmap sand = <tilesand.bmp>;

   



function mtl_terraintex_init()

{





//bmap_to_mipmap(mtl.skin1);

bmap_to_mipmap(mtl.skin2);

//bmap_to_mipmap(mtl.skin3);



//

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

//

mtl.matrix11 = float(18);	// default u scale 

mtl.matrix22 = float(18);	// default v scale



}







material mat_terraintex

{

//skin1 = grass; 

Skin2 = blendmap;     

//skin3 = sand;



// define a material effect string

     

event = mtl_terraintex_init;

  	

	effect = 

	"

    

	matrix matMtl;

       

	

       	texture entSkin1; 	// Grass

       	texture mtlSkin2; 	// Alpha Blending Map

	texture entSkin2;	// sand

	texture entSkin3;	// detailmap

        texture entSkin4;       // Basic Skin



	   



// default technique





technique ffp_terrain_tex

       		{

         		pass P0

         		{

        	

            		alphablendenable=false;



			//

			// Stage 0

			//

        		Texture[0] = <entSkin1>;	



            		magFilter[0]=linear;

			minFilter[0]=linear;

			mipFilter[0]=linear;

			





       			TextureTransformFlags[0] = Count2;

       			TextureTransform[0] = <matMtl>;

			texcoordindex[0]=0;



           		ColorArg1[0] = Texture; 

           		ColorOp[0] = selectarg1;

            		

		       	alphaop[0]=disable;

			

			//

			//stage 1

			//

			colorop[1]=disable;

			alphaop[1]=disable;

           

        		}



			pass P1

         		{

        	

            		// We need to enable alphablending 

			

			alphablendenable=true;

			srcblend=srcalpha;

			destblend=invsrcalpha;



			//

			// Stage 0

			//

        		Texture[0] = <mtlSkin2>;



            		magFilter[0]=linear;

			minFilter[0]=linear;

			mipFilter[0]=linear;

			

			//

			// We don't want the alphamap to tile

			//

       			TextureTransformFlags[0] = disable;

       			

			texcoordindex[0]=1;

		

           		ColorArg1[0] = current; 

           		ColorOp[0] = selectarg1;

            		alphaarg1[0] = texture | alphareplicate;

                	alphaop[0]=selectarg1;



			//

			// Stage 1

			//

			Texture[1] = <entSkin2>;//sand



           		magFilter[1]=linear;

			minFilter[1]=linear;

			mipFilter[1]=linear;

			

	

	       		TextureTransformFlags[1] = Count2;

       			TextureTransform[1] = <matMtl>;

			texcoordindex[1]=0;



	           	ColorArg1[1] = texture; 

        	   	ColorOp[1] = modulate;

            		alphaarg1[1] = current | alphareplicate;

                	alphaop[1]=disable;

		

			//

			// Stage 2

			//

			colorop[2]=disable;

			alphaop[2]=disable;

			

           

        		}



           



     	 	}



   		

 technique firstfallback

      {

        pass P0

        {

         //

			// Stage 0

			//

        		Texture[0] = <entSkin4>;	



            		magFilter[0]=linear;

			minFilter[0]=linear;

			mipFilter[0]=linear;

			       			

       			texcoordindex[1]=0;



           		ColorArg1[0] = Texture; 

			ColorArg2[0] = Diffuse;

           		ColorOp[0] = Modulate;

            		//

			// Stage 1

			//

			Texture[1] = <entSkin3>;



           		magFilter[1]=linear;

			minFilter[1]=linear;

			mipFilter[1]=linear;

			

	

	       		TextureTransformFlags[1] = Count2;

       			TextureTransform[1] = <matMtl>;

			texcoordindex[1]=1;



	           	ColorArg1[1] = texture;

			ColorArg2[1] = Current; 

        	   	ColorOp[1] = addsigned;

            		

	

        }

	} 







technique secondfallback

      {

        pass P0

        {

         //

			// Stage 0

			//

        		Texture[0] = <entSkin4>;	



           		ColorArg1[0] = Texture; 

			//ColorArg2[0] = Diffuse;

           		ColorOp[0] = selectarg1;



            		//

			// Stage 1

			//

			Texture[1] = <entSkin4>;



	           	ColorArg1[1] = texture;

			ColorArg2[1] = Current; 

        	   	ColorOp[1] = modulate;

         

        }

	} 

	

     

   	"; // end of the effect string



}







action ffp_TerrainTex

{

my.material = mat_terraintex;

}

 

---

Is this the code you are using?

Cheers