Creating skybox images
by 'Graysho'
OK, here's a video tutorial of the most important steps in creating a skybox using Terragen, image editor (PSP in this case) and trueSpace. The higher the resolution of the sky image, the better the result.
With low resolution, seams might be quite visible.
The box (cube) in the scene is already mapped properly.
You can download the scene and try it out.
The advantage of a box over a mapped sphere is less distortion while looking straight up.
Video Tutorial
Scene with Terragen skript