What I usually do with height fields is interpolate them in a paint 
program, then render with smooth turned off. This eliminates the artefacts 
but the resolution needs to be very high.
BTW, a higher quality landscape for Balloon Trip is on the way but it's 
been rendering for 4 days at only 640x480 0.3AA. Looks like multiple media 
radiosity and isosurfaces don't mix very well...

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