Float is not an inside joke. It is a referance between intiger math and decimal math. Older computers do not like decimal math (called floating point math). The fastes math for a computer is bit shifting, a power of 2 math. 1 << 16 = 65536 (one shifted up 16 times. That is the math PE uses.
With the pentium chip and above it would be faster to use decimal math, rather then "shift" back and forth as much as we do. This would require rewriting the entire rendering system are require an understanding of code that I am just now getting up to. But that is not the question.
PE's world is a 10 x 10 meter world. Elevation of the map is determined by a 256 color grey scale image. Each color is 10 meters differance. These values are then "shifted up" 16 times. This gives us a precision of roughly 1.5 mm ( 10/6553.6 = .00152588 ) and a maximum measurement of 655.36 Kilometers.

Everything seems problem free so far.
The PE landscape has 4 levels of detail.
The 10x10 grid are used for PE's LOD3 and LOD4. LOD3 uses a 16x16 pixal texture where LOD4 uses a single color. LOD2 splits the grid into four 5 meter grids and applies a 32x32 pixal texture. LOD1 splits the grid into sixteen 2.5 meter grids and applies a 64x64 pixal texture.
2.5 meters is the smallest unit of measure for the landscape mesh

When PE renders the landscape mesh, the height of each poly is compared to the height of those to it's left, right, up and down. An average is then used. If you have very little or very linier elevation change you will get a visual step.
Including the verticies at the 45s (upper left, etc) would help this smoothing. Increasing the range from one vertex to two would also help. The questons with both of those approaches is how much of an impact would that have on FPS and would it make the landscape too smooth.
PE does give the landscape maker two tools to deal with this problem. The first is the landscape texture editor. This tool has the ability to adjust the landscape height inside the 10x10 grid. In the original PE landscapes that most complain are unnaturaly rough, a random height change was used on nearly all textures. The second tool is the map generator inside of the scenerio editor. This tool is used to place landscape textures based on the slope of the landscape. The landscape creator can assign 3 slope ranges and up to 5 textures to use within those ranges. It is also possable to create special landscape tiles that overlay the landscape tile to modify a single 10x10 grid.
I have never seen a scenerio that uses the landscape editing potential of PE to is fullest.
Sorry for the delay.

I was watching WW2 in HD on the history chanel
Hope you don't feel like this now
