Had a few changes keeping me away from here... and a few more changes to survive yet... but back to the topic.
You've already grasped most of it from the other posts/tuorials, but here's a bit more.. some of it repeating stuff you know.
Firstly, my terrain sets do not attempt to geolocate terrains on the globe, as this is not practical with the way TG maps TER files onto the globe. Lat/Long maps to X/Z, Altitdue maps to Y displacement (not displacement along planet normal). Because of this you can only place TER files in the "northern" hemisphere and the terrain will suffer from shear as you move away from the top of the planet (0,0,0).
The strategy to my terrain sets is basically to centre the area of interest at 0,0,0 in TG using high res terrains, and then add lower resolution terrains to fill in the space around these. The drop in resolution isn't an issue because it is not intended for the camera to be close to these areas. There are still limitations to this, but it is possible to cover a fair portion of the hemisphere, to the point where the atmosphere should cover up any problems near the dege of the visible globe.
http://forums.planetside.co.uk/index.php?topic=2549.0As for the masking... well it's pretty basic when you look at it. Each terrain gets a soft edged mask applied to it (values from 0 to 1 ), and the masks are added/subtracted such that the sum of the masks at every point = 1.