In the frenzy of getting the new site up and running, I missed that Simon Couture's heightmap editor, was Flipcode's IOTD, yesterday.<br />
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Here are some screenshots from my custom heightmap editor. It is written in Delphi 6 and has a pretty good feature list. It uses a simple quadtree for culling. The texture is just a generated image stretched on the map.

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To see more screen shots and to learn more about the application, jump over to Flipcode or alternatively, Simon's site @ http://legion.gibbering.net/nouse