Do materials assigned to objects made in Blender work when the objects are imported into T2 and rendered?
Here's a little tutorial I wrote a while ago. I hope this helps.
http://forums.planetside.co.uk/index.php?topic=7567.msg80784#msg80784
Image-based materials will import if the object is exported in OBJ and includes a properly formatted MTL file with no non-ASCII characters in the file or path names. Material *properties* like reflectivity will not be imported and must be recreated in TG2.
- Oshyan
I am hoping that Terragen 3 might have better import for objects which might automatically recreate the material properties of an object. Perhaps as Terragen 2 becomes more mainstream the various companies will write SDK programs. There is so much that Terragen 2 will do which is very difficult to achieve with other software.