>   Did you try with a lower resolution? For example divide width and height
> by 10. (You don't have to use it; just try it to see what happens).

do you mean the rendering or the height field source?   

Reducing the res of the HF source doesn't change the boxing effect, only 
I get larger boxes.  I tried resolutions from 500x500 up to 10000 x 
10000, both 8 and 16 bit depths.  They all show the posterization and 
boxing when smooth is enabled, just with differing size boxing.

Reducing the rendering output size makes everything lower res, and 
eventually the boxes disappear as they become sub-pixel in size.  The 
world looks reasonable at 640x480 or whatever, since each box is 0.002 
pixels across!  So the scale of the boxes is constant in relation to the 
world scale.

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