Mipmapping depends on your videocard. It's possible Halo forces mipmapping settings, so if you've got them natively off, it switches them on anyways. Change your video card settings if you want to see this in DBP.
Halo does indeed use LOD (Leve Of Detail) for its game objects (cars, players, etc), but not for its terrain. There are a number of ways to going about using levels of detail for your objects. A simple one would to be make a low and high detail version, and if the camera is a certain distance away from the object, replace it with the low detail version; or simply show the low and hide the high.
(Another good example why object groups would be useful in DBP)
--Mouse: Famous (Avatarless) Fighting Furball
A very nice %it, indeed.