I been working on this game now for err.. years trying to get the terrain I like and want. Well I finally found multiverse on the web a few weeks ago. I does png mosics import directly from L3DT. I ran a test on a 4x4 mosaic and was downright impressed.
Took all of an hour to get it working too. Only real issues were the texture size.
Within 3 hours I had a little scene up. I will admit I took a few breaks and such.
http://www.bundysoft.com/coppermine/displayimage.php?pos=-232
http://www.bundysoft.com/coppermine/displayimage.php?pos=-233