@Ragnarok: The trees I'm using are actually placeholders, all with low-res textures. for the actual trees we will be using bilboarded leaves, similar to Speedtree's technology. and yes there is already a LOD for the model and Textures, but since we use these models as placeholders we just stick to these textures. the real trees will have far more detail and proper textures.
Also, as of now, lightmapping isn't possible for the terrains and grass, we're working our way around that and surely before release we will solve that issue.
@Mr_Smith: I'm using the Unity3d engine (Which is free now) as well as a rapid RPG creation tool, similar to RPG maker, but for unity (Will be out for the public in about 2-3 months) the models are free terrain models, and the terrain and textures are made by us. the textures are painted in corel painter, photoshop and SAI.
The model was made in Maya 2010 and textured in photoshop, we're using a placeholder cel-shader and will eventually build our own cel-shader that can create a better look.
I'm trying to make the game look JUST like an anime, and thats a VERY VERY hard thing to do, if anyone has suggestions, i'd really appreciate them.
Here's another Update, Dylan is finished and textured, some changes will be made to the face and hair, but its pretty much done.