I have RenderTextureClass that I'm using to render to texture in it, this class create 1x1 texture on initialization to render the scene to it, after that I simply add the following line:
lastAdaptionTexture = renderTextureClass->GetTexture();
That probably explains it, I had a hunch. It sounds like you're trying to read and write to the same texture at the same time - make sure this isn't the case, because it won't work. You need to have 3 textures in flight at the same time, current adapted lum (render target texture), last adapted lum (result of the previous frame), and average lum. The current one is the one you send to your tone map shader.
It should look something like this:
1. Set elapsedTime in the pixel shader to timeElapsed / 1000.0f
2. Set texture 0 to lastAdaptionTexture (adaptionTexture[!lum_idx])
3. Set texture 1 to average lum texture
4. Render to currentAdaptionTexture (adaptionTexture[lum_idx])
5. Use currentAdaptionTexture for tone mapping
6. Swap idx for next frame so that you toggle between the two textures (lum_idx = !lum_idx)
Where adaptionTexture is an array (2 textures) and lum_idx is some member variable or some static or something that you init to 0. There are other ways to do it but this is the easiest to explain, I think (and keeps you away from an unnecessary texture copy).
Is that HDR Image? If this is HDR how do I improve it? I notice that the screenshot under the terrain looks better than above the terrain
I don't know what you mean by "HDR image" or why the second image looks "better". I'm not really sure what you're after, actually. HDR on it's own isn't a magic bullet to improve visual quality - it only provides more precision/range for your color values (better/unbounded lighting without clamping colors to 255,255,255). You need to make use of that range if you want something out of it, otherwise you're not really going to see anything different other than the adaption and maybe some contrast changes from the tone mapper (which I think are slightly washing out the top image, which might be what is making you think it looks worse).
I'd say if you want it to look "better" you should add lighting... and probably some bloom. Oh, and lose the multipliers. :)