Implementing a simple texture quadtree SceneObject

Hi, all
I am in the process of creating a new SceneObject that displays a large texture in a fixed number of LODs.

Imagine a large textured quad oriented vertically and measuring 2 miles wide and 2 miles high textured with a single image. As you move closer, the quad subdivides into 4 quads each textured with one quarter of the original image at 4 times the resolution.
This continues as you move closer for several more levels of detail. I would be getting the textures from a database.

My question is how much of this can be handled by the engine already? And what parts do I need to implement?

Is there an example of something similar, but simpler than the terrain, to do this in the engine already?
Should I add each quad, in each level of detail, as a separate SceneObject at the beginning? Or just add the root and handle the LOD myself?
It been too long since my last vacation and I'm just coming up blank here.
Thanks for any replies,
--Doug