Check out BSM Render (think that what it was called) it allows normalmapping with light effect. It does that by using a smallsize cubemap for the light handling. You could use that side (without the normalmap) to do the light on your terrain as well by setting this cubemap the highest texture level.
And remember: On older hardware 5 textures as well mean 2 surfaces, as those only handle 4 textures in parallel for blending! (old in this case means GF2 class, GF4 mx and the like)
And remember: On older hardware 5 textures as well mean 2 surfaces, as those only handle 4 textures in parallel for blending! (old in this case means GF2 class, GF4 mx and the like)