Here is a scene with the only thing that has been added is a heightfield. As you can see from the attached image the shadows are not correct at all. This image was rendered at near default settings:
640 x 480
Detail 0.5
AA 3
GI 1/1
Ray Detail Region (RDR) - Default set to Detail in Crop Region
Ray Detail Region Padding (RDRP) - 0
I also rendered the image with the following settings:
RDR - none
RDRP - 0
RDR - Detail in Camera
RDRP - 0
None of those changed anything so then I tried all three settings with Padding set to 1. That changed nothing, so I increased padding to 10 and tried all three settings which again changed nothing. I also tried padding at -1 which changed nothing too.
Really not sure what the problem is, but I'm guessing it only effects the current final 2.0 version.
If you need the heightfield for testing it is here:
http://www.archer-designs.com/temp/dem/problem-terrain.zipThe .tgd is attached below.