Can't see textures

[icio.sco]

Why is it that I only see blue where there should be textures?

Screenshot: http://img168.imageshack.us/img168/5525/sandbox2mi.gif

In tutorials the person editting doesn't have this problem and I can't find any documentation on the subject.

Is there an option I can change?
Thank You

[CitizenGkar]

That looks like bad fog settings to me. It also looks like you took the screenshot from way up in the air, which will create a fadeout effect on the terrain.

[icio.sco]

That's about the same distance as most of the screenshots that I've seen where the textures are visible.

Any thoughts on what fog settings to change, and perhaps what to change them by/to?

Thanks.