Fully meshed and textured LOD can be done in less than 30 minutes! For a reasonably sized worldspace, at least.
All the steps to do this have been laid out in full, and it's really quite simple now. If it's taking you more than a few hours, you are missing some of the directions.
dirkduggler: the steps for what you did are all done in full by using Oscape to generate meshes, colors (PNGs), and normals, and then converting the PNGs to DDS using nConvert. You do not need to do anything at all in the CK, and you shouldn't have to do any manual editing of textures either.
