good job mate your new BlueBlood engine seems to be comming along nicely.
if you want i have a few tree pics you could use which have fully alpha maps - would blend better.
i hope in U5 they've fixxed the alphamap overlay effect, cause its a bug in Desert Fox i just can't get around right now ... it causes the second alphed object to disappear when it overlaps in the ZBuffer.
means unless you have forrests using standard black trasparency key's rather than alpha maps you'll get the first rwo of leaves then just the tree trunks. (kinda kills the atmosphere dead)
i agree with Arrow, you're gonna need to add some shadows - even basic ones, just to add some nice depth
i'd use a techniqué that Zelda uses, and make 2 black balls - then do a wind effect on the top one.
that way the shadows take up only a small ammount of room, on 2 plains ... you then resize thier base size to fit the object better & resize top "wind swept" one based on where the sun would be (how high in the sky) plus rotating it.
as they're only small they don't clip as much over terrain, adds a nice effect
(atleast until they add projected decals)