When I assigned the "Flat" flag to all level geometry, I got the same, "tiny texture" scaling problem.
It seemed to be a vertex shader scaling problem so I found the following line in the vertex shader code section:
Out.Tex = texcoord0.xy*50;
This deals with texture scaling. So instead of texcoord0.xy*50, I messed around with smaller values like texcoord0.xy*3 and got results, but with tesselation problems. I just bought a Direct3D book and am furiously trying to learn HLSL and texture mapping theory...
Anyway, give this a whirl (I think messing with the HLSL code and viewing the results helps the learning experience!)
