Ok, this is what I see in test game which is fine, but I did notice some anomalies when I went to the trees.
Wondering if you light mapped, then changed the terrain?
That one is baked lighting. Notice how the shadows are looking like there was a hill there.
That one is real time lighting. Notice how the shadows are on the ground where they belong.
Intel(R) Core(TM)2 Quad CPU Q6600 @ 2.40GHz, 2400 Mhz, 4 Core(s), 4 Logical Processor(s), 8gb RAM, Nvidia gtx660, Windows 7 Pro 64bit, Screen resolution 1680 x 1050.