Oh yes i forgot.
First, i use NemsTerrainEditor for the terrains and export them to *.dxf, *.map AND *.bmp.
Then the texture:
I open TextureMaker (if you don't have it, it's the best 'free' program out there i think; and don't download the newest version, with the old you can do a trick to get around the limitation of 320x320 texels)
There i open up the textures for the different heights like grassland, hills, mountains and snow.
Then i open the *.bmp file i've exported(it's actually a heightmap), make a new texture with a size bigger than it and fill the new texture with the old using the 'add' filter. As a next step, i use the smoth filter on it to fake more detail.
With these opened textures i produce the base texture of the terrain:
For that i use the multitexture-mixer, i use the now 'better' heightmap as the mix-bitmap(hope that's the name for it i am using the german version) and theothers as the textures for the heights. You may change the RepeatX and RepeatY numbers for each texture to get better detail. Play around with it until it fits and then 'generate' the texture with a fitting file size (i used 2kx2k, more will lead to HOURS of generating) and the maximum supersampling (it's worth it!)
Now that we have the base texture, we will bake the shadow into it:
Open the Advanced shader(still in TextureMaker). Use your bad heightmap as the heightmap(the good one could lead to too soft or nonexistent shadows) and set the lighting as you wish. Play around and so on until it fits and then generate it, again with the maximum supersampling and the wished texture size.
Ok. Now we have the texture, but we don't get it out of TextureMaker because we have the free demo version. What do we do? We have to use 'cut texture into pieces'(or something like this) and cut the texture into 256x256 pieces.
Now you have the pieces of the big texture. Now comes the REALLY hard and boring part. Open paint and use copy and paste, copy and paste, copy and paste...until you have your texture completed. And yes save early and save extremely often because it can happen easily(even in 800% zoom mode) that your hand doesn't want as you want and that you mess up the texture with that.
Keep your enthusiasm (i know it's hard, i've done it and i don't want to do it again) and you will be rewarded by a wonderfull texture.
Now that you've got your texture in the right size and the right format, for the actor:
Open *.dxf file open with a modelling program (Truespace 3.2 for example can read them, Milkshape works too i think), apply the texture, and export. I would not recommend smoth edges because you have enough polys yet.
And now the last steps to the wonderfull terrain:
The *.map is imported into the level editor and then made to 'clip' brushes. The Staticmesh rendering the terrain has no collision set to it.
I am sorry i cannot attach a picture but i've reached my maximum upload quota.
EDIT: found the topic where i showed parts of the terrain:
viewtopic.php?t=1116&highlight=white+plane