Fog efects?

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RiverRatt

I don't know how they did it in silent hill, but I have given it a good shot. I made a terrain1 and put it in, then
made a second terrain2 and applied a blurr filter and overlaid the first terrain so that it looks like mist being
blown across the landscape. It looks pretty darn good accept for when I happen to travel under it.
So my first question is, is it possible to texture both sides of the mist terrain? How?

Also I was wondering if placing two verry detailed terrains
together in one map like that will result in major slowdown?
I have terrain detail set to 3000, and 2000. So is there a
polly limit I should live by?