To get it the textures to fade into each other you need to use vertex alpha, or an alpha map and multiple surfaces.
Basically you would have the 'bottom' mesh as dirt for instance, then a second mesh over the top of that (a copy) with a 'grass' texture which has vertex alpha set so that the textures blend together.
That should get you started hopefully.
Basically you would have the 'bottom' mesh as dirt for instance, then a second mesh over the top of that (a copy) with a 'grass' texture which has vertex alpha set so that the textures blend together.
That should get you started hopefully.