Ok, looking at the distant meshes there is a semi opaque one:


meshes\oblivion\environment\fxoblivionlightbeamlong01_far

That is a billboard nif with semi opaque texture attached. It would appear then that it is possible to have visible when distant semi opaque objects such as smoke, clouds and mist. I am no Nifskope genius and can make the cloud meshes, but getting the object into nifskope in the same way as the above mesh is beyond me. Is anyone willing to work together to make distant clouds possible?