Yep, as TU stated, multiple compute normals can create strange effects.
I've been using the stack technique to generate some great results, but so far, they are not consistent and must be done based on feel...which means either I am not understanding the concept fully, or TG2 isn't rendering it properly yet (likely the former, though I suspect the renderer has problems with extreme displacements at this time).
For example, use a PF to generate terrain with very large scales (lets say smallest scale at 1000 and displacement at 5000 or more), then use a compute terrain with a patch size of 1000 or 500 (to match the terrain). Then add another PF to generate different and smaller scaled detail on this same terrain. Since the previous terrain was computed (aka "set") by the compute terrain, it will now apply the next terrain over the prior terrain's bumps (rather than straight up). Then add a compute normal to "set" this overall terrain as the final terrain. By this time, there will be significant overhangs and such, and yes, it will require extra computing power, but its worth it, since we want some seriously varied terrain. I've tried to keep going with this, but always end up with strange overlap artifacts, so I am still trying to understand whats going on overall.
And as stated on a previous post, if you set the patch size too small, and then displace it with large numbers, you'll get terrain that's turned in on itself, similar to how curtains bunch up. This tends to cause those strange dark shadows, likely due to TG2's renderer being "confused" on how to display the surface. That's my best guess, and only Planetside will be able to officially answer this.