The fact that it's scaled 150 in the y axis means that the smallest incline will be just over .5 a unit tall.
I think the design of the blitz terrain is built for the LOD hence the wacky 4 triangle stepping thing. It's generally not very good. Also the problem with using the built in terrain is that you only have 256 different heights over the whole thing.
Personally I build my own terrain system and use a 16 bit value rather than 8, otherwise it will never be smooth unless your terrain is only very slight undulations.
I think the design of the blitz terrain is built for the LOD hence the wacky 4 triangle stepping thing. It's generally not very good. Also the problem with using the built in terrain is that you only have 256 different heights over the whole thing.
Personally I build my own terrain system and use a 16 bit value rather than 8, otherwise it will never be smooth unless your terrain is only very slight undulations.