I am curious if anyone has had this problem, or can help me out with this.

I am getting hard shadows on my landscape, and can't seem to find a way to fix it.

Now I do have a importance volume, and a dominant directional light. I even added a point light to test it out.

I was reading on UDN about 'LandscapeLightingMaterial', but do not really understand it.

Is this my problem? and if so, can anyone expand on how to setup and use this heightmap.