Texture blurs at very close distance

#1 You should read the exporter docs. This is covered under Scetion IV: Appendix A of the DTS Exporter Reference. This is the MipMap function used to optimize your models. If you don't want the blurriness type in MIPMAP::NO_MIPMAP=true in the User Defined property tab of the object's Bounds Box. Its also best not to rotate your textures if you can at all avoid it.

#2 Cool effect.. maybe i could play around with it.... i wonder how it would work, if everything was blured alot up close, but was in focus far away.. u could play a character with long sightedness!!!

... i also love the floating cones!

#3 I actually tried the mipmap before with other objects but no luck. I added it to this object and there is no difference (the difference u see is due to changing the fog and visibility distance).
prefs.cs-------------------------------------------
$pref::OpenGL::allowCompression = "0";
$pref::OpenGL::allowTexGen = "1";
$pref::OpenGL::disableARBMultitexture = "0";
$pref::OpenGL::disableARBTextureCompression = "0";
$pref::OpenGL::disableEXTCompiledVertexArray = "0";
$pref::OpenGL::disableEXTFogCoord = "0";
$pref::OpenGL::disableEXTPalettedTexture = "0";
$pref::OpenGL::disableEXTTexEnvCombine = "0";
$pref::OpenGL::disableSubImage = "0";
$pref::OpenGL::force16BitTexture = "0";
$pref::OpenGL::forcePalettedTexture = "0";
$pref::OpenGL::gammaCorrection = "0.5";
$pref::OpenGL::maxHardwareLights = "3";
$pref::OpenGL::noDrawArraysAlpha = "0";
$pref::OpenGL::noEnvColor = "0";
$pref::OpenGL::textureAnisotropy = "0";
$pref::OpenGL::textureTrilinear = "1";

#4 You may want to try introducing extra polygons into the mix:

Road A:
  +------------------------+
  |                        |
  +------------------------+

Road B:
  +----+----+----+----+----+
  |    |    |    |    |    |
  +----+----+----+----+----+

Road B will have superior texturing and lighting.