As Martin mentioned earlier this is (I think) due to the "Ray detail multiplier" in the internal network of your render node. Try higher settings in there but Martin is more qualified than me so I'd look to him for further advice.
Also you may want to search the forums for cube map creation (otherwise known as skyboxes). This avoids the use of the sphere altogether. Basically 6 images rendered looking forward, backward, left, right up and down stitched together seamlessly to form a cross (like a Christian one). Most 3d rendering software (including Lightwave) that supports environment mapping will be able to use a cube map.
hope this helps
Richard