Well I got L3DT to work to get my terrain into Torque using TorqueScript - later realising the L3DT exporter does all the work anyway - but I ended up with this. The terrain gets black real early in the distance. The black peels away as I fly over the terrain but I can't shift the blackness back. I tried setting view distance to 5000 and fog to 5000 but it's still like this. Also bloom is switched on but it doesn't show on this - even though bloom works in the TGEA demo.
I did a test with water demo, then swapped the atlas terrain back and that old terrain didn't have the issue - so it's something about my terrain - any ideas?