I have regenerated the LOD with the changes and once the new objects are in place the LOD works fine from anywhere on the island, it is only when I exit an interior cell a distance away from the new "village" that the LOD does not work. I even tried checking some of the farmhouses as "never fades" in the CK and they still disappear.
I'm at a loss. I don't understand why the LOD does not load correctly. I have only placed a few things onto the island for testing before going through completely and wasting my time with something that will not work. I have generated LOD for several small worldspaces for myself and also a few other mod authors without issues, so I don't believe the issue is with the LODs themselves.
Added some screenshots
http://s87.photobucket.com/user/johng58/media/1_zpswz2qo5nd.jpg.html
http://s87.photobucket.com/user/johng58/media/2_zpsst7qyhfg.jpg.html
http://s87.photobucket.com/user/johng58/media/3_zpsnkjvwnwt.jpg.html
Any suggestion would be appreciated.