Hi! This is my first post to CGTalk so go easy on me 
I’m working on a fully funded project called Delta3D www.delta3D.org for the creation of a completely open source game engine. For this project a part of our team is creating a level editor which, at this point, does not include a terrain editor/generator. The engine has support for procedural terrain and DTED data yet smaller maps will require much smaller terrain areas.
Ok please excuse my lack of knowledge in game design for the following question since I’m very new: What is the best way to create terrain for a game engine? The current tool I have available is 3DStudio max 7.0. Do I use the terrain tool, apply some uvw mapping and then add some textures? I’m used to creating world objects, vehicles, organic meshes etc… The terrain will need very few faces with decent texturing in a compact size (heh that sentence is an oxymoron).
Links to articles, books, any references that might help would be VERY appreciated.
Thanks for all or any who can help 
I think it’s not too difficult for the coders to make heightmap loading, but that’s just me…