I have decided to rewrite everything, now using quadtrees , well its actually based on oneal's sandbox example, i havent quite got the quadtree working 100% but i got some pretty neat effects, which i would like to show off. Here is a few screenshots of my current progress.
Before terrain shading
atmosphere from the ground
a nice sunset
atmosphere from space with terrain shading.
I havent quite got the hang of the split merge funtionality , but its working to an aceptable level for now.