Terrain is rendered using Brute Force. This means that all the the vertices are rendered regardless of how far they are from the camera. On a small terrain like this that doesn't really matter however when the terrain grows larger it would slow then rendering to render all vertices in this way. ROAM and CLOD will be added soon.
I also tried to add a texture to the terrain however there seems to be some problem. The texture is not complete even though the texture vertices appear to be correct. I am using the IPicture interface to load the textures so maybe there is a problem with this. Tomorrow I will try and manually load the textures and see if this fixes the problem.