Assuming you mean you have Raytraced Shadows turned on in either the Cloud or Atmosphere Quality tabs, it's important to know that this will *not* help in situations like this. It's best to leave both of these turned off as the situations in which they are useful are extremely limited.
As for the terrain stretching problem, are you using any kind of masking, blending, or anything? Or is this just a single, straight procedural terrain.
- Oshyan