Admittedly the display of textures in the 3D preview can be a bit confusing if you don't understand some of the nuances of Terragen's functioning and the difference between built-in objects of different types vs. imported objects.
There are two types of built-in objects - displaceable and non-displaceable - and they are handled differently in the 3D preview. Additionally, imported objects are handled more like non-displaceable objects.
Basically, displaceable objects work like the terrain. They are able to show procedural textures because they are rendered by the main rendering engine and not by OpenGL. Notice for example that if you make a change in the scene or move the camera, certain objects (displaceable ones) do not update instantly, rather they are refined progressively just like the terrain and other non-object elements. You'll also notice that when you "Hide Objects" in the 3D preview, these objects are not hidden.
Imported and non-displaceable objects are instead rendered using OpenGL. The advantage to this is they update in realtime, there's no process of progressive refinement. And they can display simple image-based textures in the 3D preview when that option is enabled. However it also means that it's more difficult to display procedural textures on them, and this capability is not yet implemented due to that fact. So when you are using procedural textures on an imported or internal non-displaceable object (for example a Card), then you will not see the texturing in the 3D preview. Hopefully this can be made more consistent and generally improved in the future.
- Oshyan