The Zoq2,
Skyboxes don't need to be really "over-sized" (can be very small) and don't need to "contain" your entire scene.
You have to deal with the depth test of your skybox object with this command which will permit to draw your objects behind your skybox (exists since AppGameKit 1083b i guess) :
SetObjectDepthWrite( SkyBoxObjID, 0 )
And remember to make your skybox following and centered on the X,Y,Z Camera Position and set its collision mode and lighting to 0
After it's just some position adjustments to make it looking well
And then you can reduce your camera range depending on your needs (and performances)
hope this helps
(just tested and it works fine)