To answer your question regarding the .3ds format... No, .3ds does not support alphablending. You can have multiple textures on different triangles but when it comes to blending a material... No, it is not supported. The .eqg format would be useful however to me it seems I will have to end up creating one big image for terrain and then using height maps to assign it correctly. I can split up the files but it may be better to keep it as one.
I've played with some terrain programs that support drawing textures. Might be nice. We'll see after I am done with some more testing.
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