Reality Factory

http://img197.imageshack.us/img197/3084 ... 000ozn.png

I think that speaks for itself. Any way to smooth out those shadows?

No, you can't smooth the lighting on world geometry.

Lol, I've never had such problem with my game and I've been using nem's terrain generator a lot! Pretty strange...program did you use to make the terrain?

If you wanted to REALLY smooth it, you would have to use polycounts which RF can't handle. You would get really sharp shadows, though, i think. Also those polycounts would a) make the level impossible to edit and b) take forever to compile.

I guess you're using a SunLight entity that does not go directly to the floor (not 90 degrees)? Generally this is a bad idea, because as you have seen, RF doesn't smooth the lighting. A thing you can try, however, is use of RadiosityLighting. Bounce count is not so important(3-10 is normally good), important is that reflectivity scale is <=0.5, or you will have red terrain. And use 'Extra Samples'.

If this doesn't work out, use a SunLight that goes directly to the floor. You can still have shadows of houses / etc on the terrain with that.

OR you use a mesh for the terrain and bake the lighting into the textures.