The Demo does actually work - it just stretches the image across the entire terrain so you get no detail.
I'm not certain this is true. At least not on my workstation. I created a few much larger textures (2048, 4096, etc. ... this is on Radeon 9800 Pro) and tested them with the Xith3DTerrainTest class. The textures consist of a white square with various red lines splattered on it. None of them seem to load at all. I understand that the code should map a texture from 0,0 to 1,1 and cover the entire terrain. Initially, considering the small size of the stone.jpg texture, I believed that perhaps it was being applied but that the stretching was causing a perceived failure in the texture loading process. Now, however, I believe something else is going on. After loading these larger textures in, I still don't get any apparent texturing. I simply see terrain with a gradient from dark to light grey.
I have attached a screenshot of what I see. I'd love to see screenshots of the terrain test working with a texture applied. Does anyone have any shots of this working?