its quiet easy.
take a look into pxLJunks revenge III,which comes quiete nice along.
there you will find for a very low amount of money (~40 euro) exactly what you are looking for.
[url]a easter present]
if you watch there, for a example the test terrain (and other models) i done. its used the same procedere, fully shaded with specular and ready to use your virtual dental drill for drilling holes in. 