Me and sheer are working on this together, and we both found that making the terrain with the heightmap painting and using Voxel painting is actually really good (becuase thats what Cryengine uses pretty much), and it comes out pretty nice. Even without Voxel painting, if you use enough vegataion and layer painting, you can make something pretty nice. There's external program's that can create nice stuff for you too with heightmaps but for this were not using that. When were almost done, will have a thread for this project. It's going to be really nice, we promise.
You can import it like Sheer said but it needs to be broken up. It's better to create the terrain in the engine then take the bases, rocks, trees, bases, etc and make them sperate brushes. Then you can take them and do whatever you want, without modeling everything into the max scene, unlike halo
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