well, it depends, usually the ground would be textured like grass and the actual grass clumps would be spread around. ive never had to make grass all arcross a terrain fairly densly, but i suppose if i did i would probly make decent amount of grass sprites around the player, keep track of their x,z coords in relation to the player, and when one was too far away him, reposition it in the opposit direction of him, using appropriate alpha levels to make sure they blend (if that makes any sence). theres also a grass demo that comes in the blitz3d samples.
Gem Placement on Static Mesh
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