Quote - This is scene zoomed out.  Is BB EnvSphere suppose to cover the whole background?

 

Yes, that's what it should look like, although usually I use the dome for lighting if it's not going to be visible.  To use the sphere in this scene, I'd put a plane primitive under the scene to block the light coming up from below; make it big, like 100 ft or more across, and make sure cast shadows is on in its properties.  It looks like you applied the gradient material to the sphere, which is fine.

Did you add an infinite light and enable raytraced shadows, and turn on raytracing in your render settings?

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