have you tried sinu's idea of increasing the entityradius? You should also try parenting the camera to a pivot that is on the surface of the terrain and give it collision properties. Then when the pivot goes over a hill the camera will follow it up and down. Create the pivot, give it collision properties. Then create the camera, parent the camera to the pivot then set the camera to the desired height and move the pivot about.
Do you have any code you could show. it will help me to understand what exactly is happening :D
Do you have any code you could show. it will help me to understand what exactly is happening :D