diff --git a/Engine/source/gfx/bitmap/gBitmap.cpp b/Engine/source/gfx/bitmap/gBitmap.cpp
index d9a0d162c..b317107f2 100644
--- a/Engine/source/gfx/bitmap/gBitmap.cpp
+++ b/Engine/source/gfx/bitmap/gBitmap.cpp
@@ -319,7 +319,7 @@ void GBitmap::allocateBitmap(const U32 in_width, const U32 in_height, const bool
       U32 currWidth  = in_width;
       U32 currHeight = in_height;
 
-      do 
+      while (currWidth != 1 || currHeight != 1)
       {
          mMipLevelOffsets[mNumMipLevels] = mMipLevelOffsets[mNumMipLevels - 1] +
                                          (currWidth * currHeight * mBytesPerPixel);
@@ -330,7 +330,7 @@ void GBitmap::allocateBitmap(const U32 in_width, const U32 in_height, const bool
 
          mNumMipLevels++;
          allocPixels += currWidth * currHeight * mBytesPerPixel;
-      } while (currWidth != 1 || currHeight != 1);
+      }
 
       U32 expectedMips = mFloor(mLog2(mMax(in_width, in_height))) + 1;
       AssertFatal(mNumMipLevels == expectedMips, "GBitmap::allocateBitmap: mipmap count wrong");
diff --git a/Engine/source/terrain/terrData.cpp b/Engine/source/terrain/terrData.cpp
index 8be5b7990..90fd7c2f2 100644
--- a/Engine/source/terrain/terrData.cpp
+++ b/Engine/source/terrain/terrData.cpp
@@ -197,14 +197,6 @@ TerrainBlock::TerrainBlock()
    mLayerTexDirty( false ),
    mBaseTexSize( 1024 ),
    mBaseTexFormat( TerrainBlock::DDS ),
-   mDetailTexSize(0),
-   mDetailTexFormat(GFXFormat_COUNT),
-   mMacroTexSize(0),
-   mMacroTexFormat(GFXFormat_COUNT),
-   mNormalTexSize(0),
-   mNormalTexFormat(GFXFormat_COUNT),
-   mOrmTexSize(0),
-   mOrmTexFormat(GFXFormat_COUNT),
    mCell( NULL ),
    mBaseMaterial( NULL ),
    mDefaultMatInst( NULL ),
@@ -355,142 +347,6 @@ bool TerrainBlock::_setLightMapSize( void *obj, const char *index, const char *d
    return false;
 }
 
-bool TerrainBlock::_setDetailTexSize(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   S32 size;
-   castConsoleTypeFromString(size, data);
-
-   if (terrain->mDetailTexSize != size)
-   {
-      terrain->mDetailTexSize = size;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setDetailTexFormat(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   GFXFormat format;
-   castConsoleTypeFromString(format, data);
-
-   if (terrain->mDetailTexFormat != format)
-   {
-      terrain->mDetailTexFormat = format;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setMacroTexSize(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   S32 size;
-   castConsoleTypeFromString(size, data);
-
-   if (terrain->mMacroTexSize != size)
-   {
-      terrain->mMacroTexSize = size;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setMacroTexFormat(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   GFXFormat format;
-   castConsoleTypeFromString(format, data);
-
-   if (terrain->mMacroTexFormat != format)
-   {
-      terrain->mMacroTexFormat = format;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setNormalTexSize(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   S32 size;
-   castConsoleTypeFromString(size, data);
-
-   if (terrain->mNormalTexSize != size)
-   {
-      terrain->mNormalTexSize = size;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setNormalTexFormat(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   GFXFormat format;
-   castConsoleTypeFromString(format, data);
-
-   if (terrain->mNormalTexFormat != format)
-   {
-      terrain->mNormalTexFormat = format;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setOrmTexSize(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   S32 size;
-   castConsoleTypeFromString(size, data);
-
-   if (terrain->mOrmTexSize != size)
-   {
-      terrain->mOrmTexSize = size;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
-bool TerrainBlock::_setOrmTexFormat(void* obj, const char* index, const char* data)
-{
-   TerrainBlock* terrain = static_cast<TerrainBlock*>(obj);
-
-   GFXFormat format;
-   castConsoleTypeFromString(format, data);
-
-   if (terrain->mOrmTexFormat != format)
-   {
-      terrain->mOrmTexFormat = format;
-      terrain->_updateMaterials();
-      terrain->setMaskBits(MaterialMask);
-   }
-
-   return false;
-}
-
 bool TerrainBlock::setFile( const FileName &terrFileName )
 {
    if ( mTerrainAsset && mTerrainAsset->getTerrainFilePath() == terrFileName )
@@ -1440,38 +1296,6 @@ void TerrainBlock::initPersistFields()
          &TerrainBlock::_setLightMapSize, &defaultProtectedGetFn,
          "Light map dimensions in pixels." );
 
-      addProtectedField("detailTexSize", TypeS32, Offset(mDetailTexSize, TerrainBlock),
-         &TerrainBlock::_setDetailTexSize, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("detailTexFormat", TypeGFXFormat, Offset(mDetailTexFormat, TerrainBlock),
-         &TerrainBlock::_setDetailTexFormat, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("macroTexSize", TypeS32, Offset(mMacroTexSize, TerrainBlock),
-         &TerrainBlock::_setMacroTexSize, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("macroTexFormat", TypeGFXFormat, Offset(mMacroTexFormat, TerrainBlock),
-         &TerrainBlock::_setMacroTexFormat, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("normalTexSize", TypeS32, Offset(mNormalTexSize, TerrainBlock),
-         &TerrainBlock::_setNormalTexSize, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("normalTexFormat", TypeGFXFormat, Offset(mNormalTexFormat, TerrainBlock),
-         &TerrainBlock::_setNormalTexFormat, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("ormTexSize", TypeS32, Offset(mOrmTexSize, TerrainBlock),
-         &TerrainBlock::_setOrmTexSize, &defaultProtectedGetFn,
-         "");
-
-      addProtectedField("ormTexFormat", TypeGFXFormat, Offset(mOrmTexFormat, TerrainBlock),
-         &TerrainBlock::_setOrmTexFormat, &defaultProtectedGetFn,
-         "");
-
       addField( "screenError", TypeS32, Offset( mScreenError, TerrainBlock ), "Not yet implemented." );
 	
       addField( "updateBasetex", TypeBool, Offset( mUpdateBasetex, TerrainBlock ), "Whether or not to update the Base Texture" );
@@ -1524,15 +1348,6 @@ U32 TerrainBlock::packUpdate(NetConnection* con, U32 mask, BitStream *stream)
    {
       stream->write( mBaseTexSize );
       stream->write( mLightMapSize );
-
-      stream->write( mDetailTexSize );
-      stream->write( static_cast<S32>(mDetailTexFormat) );
-      stream->write( mMacroTexSize );
-      stream->write( static_cast<S32>(mMacroTexFormat) );
-      stream->write( mNormalTexSize );
-      stream->write( static_cast<S32>(mNormalTexFormat) );
-      stream->write( mOrmTexSize );
-      stream->write( static_cast<S32>(mOrmTexFormat) );
    }
 
    stream->writeFlag( mask & HeightMapChangeMask );
@@ -1595,73 +1410,6 @@ void TerrainBlock::unpackUpdate(NetConnection* con, BitStream *stream)
             clearLightMap();
          }
       }
-
-      bool updateMaterials = false;
-
-      U32 detailTexSize;
-      stream->read(&detailTexSize);
-      if (mDetailTexSize != detailTexSize)
-      {
-         mDetailTexSize = detailTexSize;
-         updateMaterials = true;
-      }
-      S32 detailTexFormat;
-      stream->read(&detailTexFormat);
-      if (mDetailTexFormat != detailTexFormat)
-      {
-         mDetailTexFormat = static_cast<GFXFormat>(detailTexFormat);
-         updateMaterials = true;
-      }
-
-      U32 macroTexSize;
-      stream->read(&macroTexSize);
-      if (mMacroTexSize != macroTexSize)
-      {
-         mMacroTexSize = macroTexSize;
-         updateMaterials = true;
-      }
-      S32 macroTexFormat;
-      stream->read(&macroTexFormat);
-      if (mMacroTexFormat != macroTexFormat)
-      {
-         mMacroTexFormat = static_cast<GFXFormat>(macroTexFormat);
-         updateMaterials = true;
-      }
-
-      U32 normalTexSize;
-      stream->read(&normalTexSize);
-      if (mNormalTexSize != normalTexSize)
-      {
-         mNormalTexSize = normalTexSize;
-         updateMaterials = true;
-      }
-      S32 normalTexFormat;
-      stream->read(&normalTexFormat);
-      if (mNormalTexFormat != normalTexFormat)
-      {
-         mNormalTexFormat = static_cast<GFXFormat>(normalTexFormat);
-         updateMaterials = true;
-      }
-
-      U32 ormTexSize;
-      stream->read(&ormTexSize);
-      if (mOrmTexSize != ormTexSize)
-      {
-         mOrmTexSize = ormTexSize;
-         updateMaterials = true;
-      }
-      S32 ormTexFormat;
-      stream->read(&ormTexFormat);
-      if (mOrmTexFormat != ormTexFormat)
-      {
-         mOrmTexFormat = static_cast<GFXFormat>(ormTexFormat);
-         updateMaterials = true;
-      }
-
-      if (updateMaterials && isProperlyAdded())
-      {
-         _updateMaterials();
-      }
    }
 
    if ( stream->readFlag() && isProperlyAdded() ) // HeightMapChangeMask
diff --git a/Engine/source/terrain/terrData.h b/Engine/source/terrain/terrData.h
index 3df260b7b..cfef5c29d 100644
--- a/Engine/source/terrain/terrData.h
+++ b/Engine/source/terrain/terrData.h
@@ -174,15 +174,6 @@ protected:
 
    BaseTexFormat mBaseTexFormat;
 
-   U32 mDetailTexSize;
-   GFXFormat mDetailTexFormat;
-   U32 mMacroTexSize;
-   GFXFormat mMacroTexFormat;
-   U32 mNormalTexSize;
-   GFXFormat mNormalTexFormat;
-   U32 mOrmTexSize;
-   GFXFormat mOrmTexFormat;
-
    ///
    TerrCell *mCell;
 
@@ -267,14 +258,6 @@ protected:
    static bool _setSquareSize( void *obj, const char *index, const char *data );
    static bool _setBaseTexSize(void *obj, const char *index, const char *data);
    static bool _setBaseTexFormat(void *obj, const char *index, const char *data);
-   static bool _setDetailTexSize(void *obj, const char *index, const char *data);
-   static bool _setDetailTexFormat(void *obj, const char *index, const char *data);
-   static bool _setMacroTexSize(void *obj, const char *index, const char *data);
-   static bool _setMacroTexFormat(void *obj, const char *index, const char *data);
-   static bool _setNormalTexSize(void *obj, const char *index, const char *data);
-   static bool _setNormalTexFormat(void *obj, const char *index, const char *data);
-   static bool _setOrmTexSize(void *obj, const char *index, const char *data);
-   static bool _setOrmTexFormat(void *obj, const char *index, const char *data);
    static bool _setLightMapSize( void *obj, const char *index, const char *data );
 
 public:
diff --git a/Engine/source/terrain/terrRender.cpp b/Engine/source/terrain/terrRender.cpp
index 4d1524009..ee3856eef 100644
--- a/Engine/source/terrain/terrRender.cpp
+++ b/Engine/source/terrain/terrRender.cpp
@@ -173,41 +173,52 @@ void TerrainBlock::_updateMaterials()
 #endif
 
    // Format has been explicitly set
-   if (mDetailTexSize != 0)
+   const U32 detailTexSize = Con::getIntVariable("Terrain::DetailTextureSize");
+   const GFXFormat detailTexFormat = static_cast<GFXFormat>(Con::getIntVariable("Terrain::DetailTextureFormat"));
+   if (detailTexSize != 0)
    {
       GFXFormat format = GFXFormatR8G8B8A8;
-      if (mDetailTexFormat < GFXFormat_COUNT)
+      if (detailTexFormat < GFXFormat_COUNT)
       {
-         format = mDetailTexFormat;
+         format = detailTexFormat;
       }
-      mDetailTextureArray->set(mDetailTexSize, mDetailTexSize, detailTexArraySize, format);
+      mDetailTextureArray->set(detailTexSize, detailTexSize, detailTexArraySize, format);
    }
-   if (mMacroTexSize != 0)
+
+   const U32 macroTexSize = Con::getIntVariable("Terrain::MacroTextureSize");
+   const GFXFormat macroTexFormat = static_cast<GFXFormat>(Con::getIntVariable("Terrain::MacroTextureFormat"));
+   if (macroTexSize != 0)
    {
       GFXFormat format = GFXFormatR8G8B8A8;
-      if (mMacroTexFormat < GFXFormat_COUNT)
+      if (macroTexFormat < GFXFormat_COUNT)
       {
-         format = mMacroTexFormat;
+         format = macroTexFormat;
       }
-      mMacroTextureArray->set(mMacroTexSize, mMacroTexSize, macroTexArraySize, format);
+      mMacroTextureArray->set(macroTexSize, macroTexSize, macroTexArraySize, format);
    }
-   if (mNormalTexSize != 0)
+
+   const U32 normalTexSize = Con::getIntVariable("Terrain::NormalTextureSize");
+   const GFXFormat normalTexFormat = static_cast<GFXFormat>(Con::getIntVariable("Terrain::NormalTextureFormat"));
+   if (normalTexSize != 0)
    {
       GFXFormat format = GFXFormatR8G8B8A8;
-      if (mNormalTexFormat < GFXFormat_COUNT)
+      if (normalTexFormat < GFXFormat_COUNT)
       {
-         format = mNormalTexFormat;
+         format = normalTexFormat;
       }
-      mNormalTextureArray->set(mNormalTexSize, mNormalTexSize, normalTexArraySize, format);
+      mNormalTextureArray->set(normalTexSize, normalTexSize, normalTexArraySize, format);
    }
-   if (mOrmTexSize != 0)
+
+   const U32 ormTexSize = Con::getIntVariable("Terrain::OrmTextureSize");
+   const GFXFormat ormTexFormat = static_cast<GFXFormat>(Con::getIntVariable("Terrain::OrmTextureFormat"));
+   if (ormTexSize != 0)
    {
       GFXFormat format = GFXFormatR8G8B8A8;
-      if (mOrmTexFormat < GFXFormat_COUNT)
+      if (ormTexFormat < GFXFormat_COUNT)
       {
-         format = mOrmTexFormat;
+         format = ormTexFormat;
       }
-      mOrmTextureArray->set(mOrmTexSize, mOrmTexSize, ormTexArraySize, format);
+      mOrmTextureArray->set(ormTexSize, ormTexSize, ormTexArraySize, format);
    }
 
    if (!mDetailTextureArray->fromTextureArray(detailTexArray, detailTexArraySize))
diff --git a/Templates/BaseGame/game/core/rendering/Core_Rendering.cs b/Templates/BaseGame/game/core/rendering/Core_Rendering.cs
index 653482d43..8ed5daf45 100644
--- a/Templates/BaseGame/game/core/rendering/Core_Rendering.cs
+++ b/Templates/BaseGame/game/core/rendering/Core_Rendering.cs
@@ -11,6 +11,18 @@ function Core_Rendering::onCreate(%this)
    
    $pref::ReflectionProbes::BakeResolution = ProjectSettings.value("Rendering/ProbeCaptureResolution", "64");
    
+   $Terrain::LerpBlend = ProjectSettings.value("Terrain/LerpBlend");
+   
+   $Terrain::DetailTextureSize = ProjectSettings.value("Terrain/DetailTextureSize");
+   $Terrain::MacroTextureSize = ProjectSettings.value("Terrain/MacroTextureSize");
+   $Terrain::NormalTextureSize = ProjectSettings.value("Terrain/NormalTextureSize");
+   $Terrain::OrmTextureSize = ProjectSettings.value("Terrain/OrmTextureSize");
+   
+   $Terrain::DetailTextureFormat = ProjectSettings.value("Terrain/DetailTextureFormat");
+   $Terrain::MacroTextureFormat = ProjectSettings.value("Terrain/MacroTextureFormat");
+   $Terrain::NormalTextureFormat = ProjectSettings.value("Terrain/NormalTextureFormat");
+   $Terrain::OrmTextureFormat = ProjectSettings.value("Terrain/OrmTextureFormat");
+   
    exec("./scripts/graphicsOptions.cs");
    exec("./scripts/renderManager.cs");
    exec("./scripts/gfxData/clouds.cs");
diff --git a/Templates/BaseGame/game/tools/worldEditor/gui/TerrainPainterToolbar.ed.gui b/Templates/BaseGame/game/tools/worldEditor/gui/TerrainPainterToolbar.ed.gui
index ae353fd22..ca4126330 100644
--- a/Templates/BaseGame/game/tools/worldEditor/gui/TerrainPainterToolbar.ed.gui
+++ b/Templates/BaseGame/game/tools/worldEditor/gui/TerrainPainterToolbar.ed.gui
@@ -464,9 +464,9 @@
          bitmap = "tools/gui/images/separator-h.png";
       };
 
-      new GuiControl(LerpBlendCheckButtonContainer,EditorGuiGroup) {
+      new GuiControl(TerrainTextureSettingsButtonContainer,EditorGuiGroup) {
          position = "628 5";
-         extent = "70 50";
+         extent = "90 18";
          minExtent = "8 2";
          horizSizing = "right";
          vertSizing = "bottom";
@@ -478,27 +478,17 @@
          isContainer = "1";
          canSave = "1";
          canSaveDynamicFields = "0";
-
-         new GuiCheckBoxCtrl() {
-            text = " LerpBlend";
-            groupNum = "-1";
-            buttonType = "ToggleButton";
-            useMouseEvents = "0";
-            position = "0 2";
-            extent = "140 18";
-            minExtent = "8 2";
+         
+         new GuiButtonCtrl() {
+            text = "Texture Settings";
+            buttonType = "pushButton";
+            profile = "ToolsGuiButtonProfile";
+            command = "TerrainTextureSettingsDlg.show();";
+            tooltipProfile = "ToolsGuiToolTipProfile";
+            position = "0 0";
+            extent = "90 18";
             horizSizing = "right";
             vertSizing = "bottom";
-            profile = "ToolsGuiCheckBoxProfile";
-            visible = "1";
-            active = "1";
-            command = "ETerrainEditor.toggleBlendType($ThisControl);";
-            tooltipProfile = "ToolsGuiToolTipProfile";
-            hovertime = "1000";
-            isContainer = "0";
-            internalName = "LerpBlendCheckBox";
-            canSave = "1";
-            canSaveDynamicFields = "0";
          };
       };
    };
diff --git a/Templates/BaseGame/game/tools/worldEditor/gui/guiTerrainTextureSettingsDlg.ed.gui b/Templates/BaseGame/game/tools/worldEditor/gui/guiTerrainTextureSettingsDlg.ed.gui
new file mode 100644
index 000000000..72801178d
--- /dev/null
+++ b/Templates/BaseGame/game/tools/worldEditor/gui/guiTerrainTextureSettingsDlg.ed.gui
@@ -0,0 +1,278 @@
+//--- OBJECT WRITE BEGIN ---
+%guiContent = new GuiControl(TerrainTextureSettingsDlg, EditorGuiGroup) {
+   position = "0 0";
+   extent = "1024 768";
+   minExtent = "8 2";
+   horizSizing = "right";
+   vertSizing = "bottom";
+   profile = "ToolsGuiDefaultProfile";
+   visible = "1";
+   active = "1";
+   tooltipProfile = "ToolsGuiToolTipProfile";
+   hovertime = "1000";
+   isContainer = "1";
+   canSave = "1";
+   canSaveDynamicFields = "1";
+
+   new GuiWindowCtrl() {
+      canSaveDynamicFields = "0";
+      internalName = "TerrainTextureSettings";
+      Enabled = "1";
+      isContainer = "1";
+      Profile = "ToolsGuiWindowProfile";
+      position = "342 184";
+      extent = "340 400";
+      minExtent = "340 400";
+      horizSizing = "center";
+      vertSizing = "center";
+      canSave = "1";
+      isDecoy = "0";
+      Visible = "1";
+      tooltipprofile = "ToolsGuiToolTipProfile";
+      hovertime = "1000";
+      Margin = "0 0 0 0";
+      Padding = "0 0 0 0";
+      AnchorTop = "1";
+      AnchorBottom = "1";
+      AnchorLeft = "1";
+      AnchorRight = "1";
+      resizeWidth = "1";
+      resizeHeight = "0";
+      canMove = "1";
+      canClose = "1";
+      canMinimize = "0";
+      canMaximize = "0";
+      minSize = "4 4";
+      closeCommand = "TerrainTextureSettingsDlg.cancel();";
+      EdgeSnap = "0";
+      text = "Global Terrain Texture Settings";
+
+      new GuiCheckBoxCtrl() {
+         internalName = "lerpBlendCheckBox";
+         text = "LerpBlend";
+         profile = "ToolsGuiCheckBoxProfile";
+         tooltipProfile = "ToolsGuiToolTipProfile";
+         tooltip = "If enabled, terrain textures will use a simple linear interpolation blending method.";
+         
+         command = "TerrainTextureSettingsDlg.apply();";
+         
+         position = "20 40";
+         extent = "300 20";
+      };
+      
+      new GuiControl() {
+         position = "20 80";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Detail Texture Size:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiTextEditCtrl() {
+            internalName = "detailTextureSizeTextEdit";
+            profile = "ToolsGuiTextEditProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 110";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Detail Texture Format:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiPopUpMenuCtrl() {
+            internalName = "detailTextureFormatPopUpMenu";
+            profile = "ToolsGuiPopUpMenuProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 140";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Macro Texture Size:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiTextEditCtrl() {
+            internalName = "macroTextureSizeTextEdit";
+            profile = "ToolsGuiTextEditProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 170";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Macro Texture Format:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiPopUpMenuCtrl() {
+            internalName = "macroTextureFormatPopUpMenu";
+            profile = "ToolsGuiPopUpMenuProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 200";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Normal Texture Size:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiTextEditCtrl() {
+            internalName = "normalTextureSizeTextEdit";
+            profile = "ToolsGuiTextEditProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 230";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "Normal Texture Format:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiPopUpMenuCtrl() {
+            internalName = "normalTextureFormatPopUpMenu";
+            profile = "ToolsGuiPopUpMenuProfile";
+         
+            command = "TerrainTextureSettingsDlg.apply();";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 260";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "ORM Texture Size:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiTextEditCtrl() {
+            internalName = "ormTextureSizeTextEdit";
+            profile = "ToolsGuiTextEditProfile";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 290";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 20";
+         
+         new GuiTextCtrl() {
+            text = "ORM Texture Format:";
+            profile = "ToolsGuiTextProfile";
+            
+            position = "0 0";
+            extent = "120 20";
+         };
+         
+         new GuiPopUpMenuCtrl() {
+            internalName = "ormTextureFormatPopUpMenu";
+            profile = "ToolsGuiPopUpMenuProfile";
+            
+            position = "130 0";
+            extent = "170 20";
+         };
+      };
+      
+      new GuiControl() {
+         position = "20 350";
+         profile = "ToolsGuiDefaultProfile";
+         extent = "300 30";
+      
+         new GuiButtonCtrl() {
+            text = "Apply & Save";
+            profile = "ToolsGuiButtonProfile";
+            position = "0 0";
+            
+            extent = "145 30";
+            
+            command = "TerrainTextureSettingsDlg.applyAndSave();";
+         };
+      
+         new GuiButtonCtrl() {
+            text = "Cancel";
+            profile = "ToolsGuiButtonProfile";
+            position = "155 0";
+            
+            command = "TerrainTextureSettingsDlg.cancel();";
+            
+            extent = "145 30";
+         };
+      };
+   };
+};
+//--- OBJECT WRITE END ---
diff --git a/Templates/BaseGame/game/tools/worldEditor/scripts/EditorGui.ed.cs b/Templates/BaseGame/game/tools/worldEditor/scripts/EditorGui.ed.cs
index b39839e8d..dd1693405 100644
--- a/Templates/BaseGame/game/tools/worldEditor/scripts/EditorGui.ed.cs
+++ b/Templates/BaseGame/game/tools/worldEditor/scripts/EditorGui.ed.cs
@@ -119,7 +119,8 @@ function EditorGui::init(%this)
       }
          
       exec("~/worldEditor/gui/guiTerrainMaterialDlg.ed.gui"); 
-      exec("~/worldEditor/gui/TerrainBrushSoftnessCurveDlg.ed.gui");        
+      exec("~/worldEditor/gui/TerrainBrushSoftnessCurveDlg.ed.gui");   
+      exec("~/worldEditor/gui/guiTerrainTextureSettingsDlg.ed.gui");      
    }
    if ( !isObject( %this-->TerrainPainterToolbar) )
    {
diff --git a/Templates/BaseGame/game/tools/worldEditor/scripts/editors/terrainEditor.ed.cs b/Templates/BaseGame/game/tools/worldEditor/scripts/editors/terrainEditor.ed.cs
index 27dbff083..c0a883fda 100644
--- a/Templates/BaseGame/game/tools/worldEditor/scripts/editors/terrainEditor.ed.cs
+++ b/Templates/BaseGame/game/tools/worldEditor/scripts/editors/terrainEditor.ed.cs
@@ -222,8 +222,6 @@ function EPainter::setup( %this, %matIndex )
    ETerrainEditor.setAction( ETerrainEditor.currentAction );
    EditorGuiStatusBar.setInfo(ETerrainEditor.currentActionDesc);
    ETerrainEditor.renderVertexSelection = true;
-   
-   EWTerrainPainterToolbar-->LerpBlendCheckBox.setValue($Terrain::LerpBlend);
 }
 
 function onNeedRelight()
@@ -259,12 +257,6 @@ function TerrainEditor::toggleBrushType( %this, %brush )
    %this.setBrushType( %brush.internalName );
 }
 
-function TerrainEditor::toggleBlendType( %this, %check )
-{
-   $Terrain::LerpBlend = %check.getValue();
-   %this.getActiveTerrain().getClientObject().setMaterialsDirty();
-}
-
 function TerrainEditor::offsetBrush(%this, %x, %y)
 {
    %curPos = %this.getBrushPos();
diff --git a/Templates/BaseGame/game/tools/worldEditor/scripts/interfaces/terrainTextureSettingsDlg.ed.cs b/Templates/BaseGame/game/tools/worldEditor/scripts/interfaces/terrainTextureSettingsDlg.ed.cs
new file mode 100644
index 000000000..59b72e82b
--- /dev/null
+++ b/Templates/BaseGame/game/tools/worldEditor/scripts/interfaces/terrainTextureSettingsDlg.ed.cs
@@ -0,0 +1,151 @@
+//-----------------------------------------------------------------------------
+// Copyright (c) 2012 GarageGames, LLC
+//
+// Permission is hereby granted, free of charge, to any person obtaining a copy
+// of this software and associated documentation files (the "Software"), to
+// deal in the Software without restriction, including without limitation the
+// rights to use, copy, modify, merge, publish, distribute, sublicense, and/or
+// sell copies of the Software, and to permit persons to whom the Software is
+// furnished to do so, subject to the following conditions:
+//
+// The above copyright notice and this permission notice shall be included in
+// all copies or substantial portions of the Software.
+//
+// THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+// IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+// FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+// AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+// LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
+// FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS
+// IN THE SOFTWARE.
+//-----------------------------------------------------------------------------
+
+$TerrainTextureSettingsDlg::TerrainTextureFormat = 
+   "R8G8B8 10" TAB 
+   "R8G8B8_SRGB 11" TAB 
+   "R8G8B8A8 12" TAB 
+   "R8G8B8A8_SRGB 15" TAB
+   "BC5 33";
+
+//-----------------------------------------------------------------------------
+
+function TerrainTextureSettingsDlg::show( %this )
+{
+   //%this.onWake();
+   Canvas.pushDialog( %this );
+}
+
+function TerrainTextureSettingsDlg::onWake( %this ) {
+   %this-->lerpBlendCheckBox.setStateOn(ProjectSettings.value("Terrain/LerpBlend"));
+   
+   %this-->detailTextureFormatPopUpMenu.clear();
+   %this-->macroTextureFormatPopUpMenu.clear();
+   %this-->normalTextureFormatPopUpMenu.clear();
+   %this-->ormTextureFormatPopUpMenu.clear();
+   
+   for(%i = 0; %i < getFieldCount($TerrainTextureSettingsDlg::TerrainTextureFormat); %i++) {
+      %field = getField($TerrainTextureSettingsDlg::TerrainTextureFormat, %i);
+      
+      %this-->detailTextureFormatPopUpMenu.add(getWord(%field, 0), getWord(%field, 1));
+      %this-->macroTextureFormatPopUpMenu.add(getWord(%field, 0), getWord(%field, 1));
+      %this-->normalTextureFormatPopUpMenu.add(getWord(%field, 0), getWord(%field, 1));
+      %this-->ormTextureFormatPopUpMenu.add(getWord(%field, 0), getWord(%field, 1));
+   }
+   
+   %this-->detailTextureFormatPopUpMenu.setSelected(ProjectSettings.value("Terrain/DetailTextureFormat"), false);
+   %this-->macroTextureFormatPopUpMenu.setSelected(ProjectSettings.value("Terrain/MacroTextureFormat"), false);
+   %this-->normalTextureFormatPopUpMenu.setSelected(ProjectSettings.value("Terrain/NormalTextureFormat"), false);
+   %this-->ormTextureFormatPopUpMenu.setSelected(ProjectSettings.value("Terrain/OrmTextureFormat"), false);
+   
+   %this-->detailTextureSizeTextEdit.setText(ProjectSettings.value("Terrain/DetailTextureSize"));
+   %this-->macroTextureSizeTextEdit.setText(ProjectSettings.value("Terrain/MacroTextureSize"));
+   %this-->normalTextureSizeTextEdit.setText(ProjectSettings.value("Terrain/NormalTextureSize"));
+   %this-->ormTextureSizeTextEdit.setText(ProjectSettings.value("Terrain/OrmTextureSize"));
+}
+
+function TerrainTextureSettingsDlg::apply( %this ) {
+   $Terrain::LerpBlend = %this-->lerpBlendCheckBox.isStateOn();
+   
+   $Terrain::DetailTextureFormat = %this-->detailTextureFormatPopUpMenu.getSelected();
+   $Terrain::MacroTextureFormat = %this-->macroTextureFormatPopUpMenu.getSelected();
+   $Terrain::NormalTextureFormat = %this-->normalTextureFormatPopUpMenu.getSelected();
+   $Terrain::OrmTextureFormat = %this-->ormTextureFormatPopUpMenu.getSelected();
+   
+   if (%this-->detailTextureSizeTextEdit.getText() $= "" || mIsPow2(%this-->detailTextureSizeTextEdit.getText())) {
+      $Terrain::DetailTextureSize = %this-->detailTextureSizeTextEdit.getText();
+   }
+   if (%this-->macroTextureSizeTextEdit.getText() $= "" || mIsPow2(%this-->macroTextureSizeTextEdit.getText())) {
+      $Terrain::MacroTextureSize = %this-->macroTextureSizeTextEdit.getText();
+   }
+   if (%this-->normalTextureSizeTextEdit.getText() $= "" || mIsPow2(%this-->normalTextureSizeTextEdit.getText())) {
+      $Terrain::NormalTextureSize = %this-->normalTextureSizeTextEdit.getText();
+   }
+   if (%this-->ormTextureSizeTextEdit.getText() $= "" || mIsPow2(%this-->ormTextureSizeTextEdit.getText())) {
+      $Terrain::OrmTextureSize = %this-->ormTextureSizeTextEdit.getText();
+   }
+   
+   ETerrainEditor.getActiveTerrain().getClientObject().setMaterialsDirty();
+}
+
+
+function TerrainTextureSettingsDlg::validate( %this ) {
+   if (%this-->detailTextureSizeTextEdit.getText() !$= "" && !mIsPow2(%this-->detailTextureSizeTextEdit.getText())) {
+      toolsMessageBoxOK("Detail Texture Error!", "Detail texture resolution must be a power of 2");
+      return false;
+   }
+   if (%this-->macroTextureSizeTextEdit.getText() !$= "" && !mIsPow2(%this-->macroTextureSizeTextEdit.getText())) {
+      toolsMessageBoxOK("Macro Texture Error!", "Macro texture resolution must be a power of 2");
+      return false;
+   }
+   if (%this-->normalTextureSizeTextEdit.getText() !$= "" && !mIsPow2(%this-->normalTextureSizeTextEdit.getText())) {
+      toolsMessageBoxOK("Normal Texture Error!", "Normal texture resolution must be a power of 2");
+      return false;
+   }
+   if (%this-->ormTextureSizeTextEdit.getText() !$= "" && !mIsPow2(%this-->ormTextureSizeTextEdit.getText())) {
+      toolsMessageBoxOK("ORM Texture Error!", "ORM texture resolution must be a power of 2");
+      return false;
+   }
+   
+   return true;
+}
+
+
+function TerrainTextureSettingsDlg::cancel( %this ) {
+   $Terrain::LerpBlend = ProjectSettings.value("Terrain/LerpBlend");
+   
+   $Terrain::DetailTextureFormat = ProjectSettings.value("Terrain/DetailTextureFormat");
+   $Terrain::MacroTextureFormat = ProjectSettings.value("Terrain/MacroTextureFormat");
+   $Terrain::NormalTextureFormat = ProjectSettings.value("Terrain/NormalTextureFormat");
+   $Terrain::OrmTextureFormat = ProjectSettings.value("Terrain/OrmTextureFormat");
+   
+   $Terrain::DetailTextureSize = ProjectSettings.value("Terrain/DetailTextureSize");
+   $Terrain::MacroTextureSize = ProjectSettings.value("Terrain/MacroTextureSize");
+   $Terrain::NormalTextureSize = ProjectSettings.value("Terrain/NormalTextureSize");
+   $Terrain::OrmTextureSize = ProjectSettings.value("Terrain/OrmTextureSize");
+   
+   ETerrainEditor.getActiveTerrain().getClientObject().setMaterialsDirty();
+   Canvas.popDialog(%this);
+}
+
+function TerrainTextureSettingsDlg::applyAndSave( %this ) {
+   if (!%this.validate()) {
+      return;
+   }
+   %this.apply();
+   
+   ProjectSettings.setValue("Terrain/LerpBlend", $Terrain::LerpBlend);
+
+   ProjectSettings.setValue("Terrain/DetailTextureFormat", $Terrain::DetailTextureFormat);
+   ProjectSettings.setValue("Terrain/MacroTextureFormat", $Terrain::MacroTextureFormat);
+   ProjectSettings.setValue("Terrain/NormalTextureFormat", $Terrain::NormalTextureFormat);
+   ProjectSettings.setValue("Terrain/OrmTextureFormat", $Terrain::OrmTextureFormat);
+   
+   ProjectSettings.setValue("Terrain/DetailTextureSize", $Terrain::DetailTextureSize);
+   ProjectSettings.setValue("Terrain/MacroTextureSize", $Terrain::MacroTextureSize);
+   ProjectSettings.setValue("Terrain/NormalTextureSize", $Terrain::NormalTextureSize);
+   ProjectSettings.setValue("Terrain/OrmTextureSize", $Terrain::OrmTextureSize);
+   
+   ProjectSettings.write();
+   
+   Canvas.popDialog(%this);
+}
\ No newline at end of file