I'm trying to make a small plain in eastern Cyrodiil to build a house there. I straightened the terrain in TSECS, but I still get ugly penetrable hill texture on the plain when in-game. How do I remove it?

http://i48.tinypic.com/14n2tl3.jpg
http://i50.tinypic.com/21jowg7.jpg
http://i48.tinypic.com/35i3qyf.jpg

LOD error?