The reply is a bit late, but I wanted to tell you that my solution is not perfect yet.
Sure you can use power of two images now, but of cause there is now one pixel missing which means there is data missing.
The missing data results in a height of zero. This is not that bad if you only load a terrain once as you will never see this issue as its at the very end of the terrain. But I guess you will get problems if you dynamically add terrains and attach them.
I will try to solve this problem, but not in the next weeks.
When I did, I'll post it here of cause.

Greez
Duallity

TnTGaming: Sorry man, I don't own a 360, so I can't really help. To tell you the truth, I'm astonished that the demo even works on it.

If I ever get a 360, I'll look into it, but I don't think that'll happen any time soon. I simply don't have the money to spend.

I actually have this working fine on the xbox 360 now.  Took some fiddling with but I use sunburn rendering engine and I got your quad terrain to submit itself through the sunburn render manager actually.  Now I just have to get sunburn to play nice with the quad terrains lighting and some other fixes to make it a fully integrated solution that will hopefully mix optimized heightmaps with the sexyness of sunburn.

Hey, I'm getting this error when I'm trying to get it going on my Xbox

An unhandled exception of type 'System.NotSupportedException' occurred in Microsoft.Xna.Framework.dll
Additional information: This functionality is not available on this platform.

at this line : normalTexture.GenerateMipMaps(TextureFilter.Anisotropic);

did you find a workaround for this?

Thanks,
Justin

I did get it to work but I don't have my code here, I will check for you later and post.

Can someone please explain, What does it mean to have a static dataset when working with QuadTree Lods and why is this not a limitation in geometry clipmaps?