For a large mod project I'm working on, I needed to create a valley in a mountain range. So, I went ahead with the landscaping tool and very messily flattened a large swathe of mountains, creating the rough shape for my valley. However, when I went in-game to get a better idea of the size of the valley, all of the existing terrain was still there. If I turned on no-clipping and 'flew' through the original mountain, though, the valley I'd created was still visible behind the original mountain landscape. (Just to clarify, this original mountain was landscape rather than just a mountain object.) I also placed a couple of static objects and they still appear, so my .esp is definitely activated. If it makes any difference, the mod I'm working on has its own .esm.
Here is a picture of the problem, with my valley extending off on the left of the screen.
http://i.imgur.com/f7pxD.jpg
If I continue into the valley though, my landscape edit just cuts off at a certain point, and none of the rest of the valley is rendered. Obviously, in creation kit, none of this mountain is visible.