Thanks for the comment!
Quote: "Is there any negative to having that turned on?"
I found that most terrain editors export the way Blitzwerks Terrain imports it. Blitzwerks Terrain makes point 0,0 go to point 0,0. Advanced Terrain makes the terrain look the same as on the heightmap.
The colour heightmap format is compatible with 8 bit greyscale in most terrain engines. Most terrain engines only read the red value of the heightmap and ignore the rest. The colour heightmapping feature keeps the red channel the same but uses the green channel to add extra accuracy.
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