My Problem that I'm running into is my scene looks really blocky. I'm not so much concerned about the geometry but I'd like to make the textures flow. IE: Grass shouldn't instantly drop to dirt. It should flow from grass to dirt. And Aside to that, the dropoff from grass to dirt shouldn't necessarily be a straight line. Heres a link to a picture of a game that portrays the effect I'm going for http://macapper.com/wp-content/uploads/2008/02/diablo2.jpg notice how there is the stone texture and that gives way to the sand texture. (doesn't give way in a straight line) My thought was to make some sort of editor that drew a circle on the xz plane (the ground) when you click the mouse the ground that was inside of the circle would be textured the selected texture. This would get rid of the straight line problem. Only problem though is I'd have to make an algorithm that removes unneeded veritces and replaces it with the new vertices of the outside of the circle. Any Ideas of how to implement?

You could indeed do this with a paint tool that inserts verts that help you do the blending

Alternatively, you can use a texture mapped over the terrain as a blend mask

A couple older techniques to do this too:

#1 - make transition tiles. IE have some art that has both brick and dirt in it and use that tile to transition between the 2 other tile types.

#2 - multitextureing. use straight up alpha blending on a tile to blend from one peice of art on one side of the texture to the other type of art on the other side of the texture.

just more options in case you want em :P