GLSL shading is now in blender, thanks to the work of our rockstar coder Brecht. Just enable it in your preferences under System & OpenGL, and change to the shaded draw type. Among other amazing things, this means normal maps in 3d view!
Along with this also comes the ability to paint multiple textures directly onto your objects using texture paint mode in the 3d view. Because with glsl blender can draw materials with texture stacks that contain stencil maps, splatting grass and dirt onto your terrain is as simple as using texture paint mode with a stencil map assigned to the uvs. It’s such a beautiful thing. Watch the video to learn how this is done. The idea is that this same texture stack will then be exported to crystal space for splatting for the game.
Download the .ogg file
Download the blend file from the video