As per my last post, I have changed the selection tool for terrain editing into a sphere.  It makes so much more sense to do it that way, and took about 10 minutes to change.  I have also changed the functionality so that editing the terrain is a “click-hold-drag” process instead of single clicks.  This gives much more control over the process.  Because of that I was able to change the amount that each update changes the terrain’s height down to 0.01, from 5.  Again, this is a much, much finer control for editing terrains.  I have put in a selectionStrength variable that I will eventually be able to change to affect how much or how little dragging across the terrain should affect it, but for now it’s just nice and slow.  When in terrain edit mode you can scroll the mouse wheel to make the selection sphere bigger or smaller, like this:

Overall I’m really happy with where I am right now.  I still need a way to remove objects from a scene but that’s such an easy thing I’ll probably save it for later and start creating accurately scaled assets for Penrith Forest.  I’ll probably take a few days to get a basic set of objects together then provide at least a screenshot of the area in the world editor, and eventually a demo you can run around in.