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Need help Sculpting and Painting terrain!

Hello ladies and gentlemen!

So I am having problems with sculpting the terrain and painting it, it seems I can not blend it not all that well. Take a look at this picture: http://imgur.com/a/CMpme … So the issue i am having is that it is only grabbing the squares the engine has, rather than the shape of the sculpt/paint tool that is circular. Making the forming way more blocky, is there a way to make it so i can add shape better?

Anything helps, links or suggestions.

Thanks.