That red circle that you're supposed to shape with is just stuck at one place. I've never done any serious landscape editing though so i'm probably just missing something?

Would it be possible to create a small river in the temple courtyard, for example?

Thanks

Um...I may be misunderstanding your question, but...
In my copy of the game, ALL of the "Mournhold" cells are Interior cells, and use static meshes for the "ground" (even in what passes for "outside" areas, such as the Temple Courtyard).
So, there is no landscape to edit in the Construction Set. To get a river in the Temple Courtyard, I think you would have to replace the existing static "ground" mesh (think it's something like "ex_MH_Road_01" or such) with one that contains your river (and then add the water, using one of the available "water" meshes, or lower the whole cell content to below the existing cell water line, which will probably flood the actual existing footpaths in the normal mesh).

I've heard of a program called "Cell to Nif" by Yacoby (?) that will convert MW "exterior" cells to .nif files, so they cam be used in interior cells, but haven't tried it myself. Might be something you could use, though.

you're right they're interior cells, i didnt know they only had static meshes..

That cell to nif utility sounds great, i'll google it. Thanks!

You're Blender savy aren't you? Open it up and carve a river! It'd probably look better with a static infact because you could give it stone edges.

true, could be fun to try

Another spot where Max has an edge...

Not sure if Blender has a similar feature, but in Max, there's a terrain compound object. You can draw contours, like a topographical map, and merge them into a smoothed terrain object. I've used the technique once or twice before, it works great and you can tweak the settings and poly count. If you really wanna get fancy, you can even texture it (with different tiles) and add shadow maps.

no idea if blender has that kind of feature, i should probably try to learn 3DS at some point, to see what i really prefer to work with.