How do computer games render their ground? I will be using a heightmap for geometry (though I will later optimize it) but I am wondering what the best technique is, for example, to 'paint' my ground; grass most everywhere, dirt paths here and there, gravel inside towns, and smooth transitions between each type of material.
Do I just use a huge pre-baked texture? That seems very inefficient, when I could tile existing textures. So then do I use a huge alpha map for each existing texture? In theory it sounds okay to me but how do I actually go about doing that and what are the consequences? I really don't know where to start, and my Google searches aren't proving very effective.
I'd rather not have to 'snap' the texture to the grid (i.e. space (0,0) is grass, space (0,2) is dirt, space (0,1) is grass-dirt transition); I'd rather be able to arbitrarily paint so that it looks more convincing. Of course that would be the easy way but it's too much of a sacrifice in graphics quality and 'realism'.
I'm mostly just looking for theory and options here. I'm using OpenGL so if you can provide tips as far as OpenGL's way of doing things, and functions that I may never have heard of, that would be great.
Just for clarification, Oblivion is a good reference as to what I'm looking for. I don't know how the ground's geometry is (heightmap, static 3D models, etc) but their terrain has different ground types and smooth transitions between them, like I'm talking about. Here's an example image, notice how the cobblestone blends into the grass, unrealistically but smoothly: http://www.elitistsnob.com/images/Oblivion%202006-05-21%2008-38-25-15.jpg
Also I think I read about this in one of the Game Programming Gems books, but I didn't pay much attention to it at the time, and now that it's summer I don't have access to my university's library to check! I'm looking for tables of contents right now and will edit if I find it, but I will still not be able to read it until mid August.
EDIT: Ah man, Game Programming Gems 7 has a chapter 5.8 titled "Mapping Large Textures for Outdoor Terrain Rendering", that sounds like exactly what I need, but my U's library doesn't even have that book! I couldn't find anything exactly like this in the other Game Programming Gems books, though a couple had some terrain geometry articles.