I've been messin' hard in the material editor and I've come to grips with the layers and alphas....now to create something with it. 

Joe Chip created this method of getting the continuous flow of terrain as mentioned in the earlier posts. He used a caustic wave map from the sea kit on the terrain to get that effect. I think he succeeds quite well. Since he showed me this I've been trying different wavemaps and grayscales.. Haven't made any good mountains yet...but I've got some killer sand dunes....

I must say the alpha and layers thing is way cool.....:)