Freewrold3D 2.0 has just been released with an array of new features, including: Undo/Redo system, 10x faster terrain editing, 10x faster terrain painting, up to 50x faster lightmap generation, over 9 3D model formats supported, real-time water rendering and much more.
Freeworld3D is an all purpose terrain editor, scene editor and world editor all in one. Edit and paint terrain in real-time with ease. Load and place meshes into the scene, transforming them using a 3d gizmo like most popular 3d modelling packages. Terrain editing has never been easier.
Find out more here http://www.freeworld3d.org