The only thing that would make this look better would be real-time shadows, but I'm not sure if it's even possible. I've actually come up with two theories as to shadows in FH: 1. They're coded in the game, and just need to be brought out via implementing the proper code into either PS or terrain.cg, or both (or maybe into one of the many .material files!) OR 2. They're not coded into the game at all, and the only way to get at them would be through the .dlls, which means it would be relatively impossible.
I've been looking into shadows for a long time, myself! and I haven't had any luck, unfortunately. :F
You and I have been going through the same task for quite a while it seems. Ogre3D, the engine this game (And Impressive Title) were made in, supports shadows without any modification, so far as I know. Considering IT had them built into the game, and FH is... essentially the same game, it should be possible. If only I knew where to look. I mean, you go into almost any .material file in FH and you find the line "Recieves Shadows".
And if you go into settings.cfg, you find: "Shadows=True, ShadowDetail=0"
If that isn't suspicious, I don't know what is. If only I could talk to Kovu.