I also spent some time on editing normals using SpeedTree script.
I wouldn't think it'd make a huge difference but it did. It looks much softer in engine and it blends really nicely with terrain. It helps to keep the atmosphere blurry and foggy.
I had no idea how to block out environment so decided to put a nice stone wall. It seems reasonable since this is how people used to establish boundaries between their lands.
I finally made 2nd level of lods for further background. They're basically two planes intersecting but I put additional edge in the middle to turn the very bottom vertex normals upwards. Again it helps blending with environment.
I also made cute little mushrooms.
* * *
I'm still trying to make my level more interactive. Therefore I'm going to add so-called boids.
What could be creepier than a bunch of big fat ravens in a spooky forest. I have never modelled a bird before but it went pretty fast. As long as I got a good reference it was a matter of two hours to have it built and textured.
Using BoneTool was a bit dodgy because I don't know how, and if it's even possible, to snap bones to the actual mesh while you place them.
I;m trying to skin it properly at the moment.