- The Plane you have the material applied to needs a few vertices (more than 4) to begin with.
- Turn Tesselation on in the settings (PM Triangles)
- Hook up the displacement texture to world displacement (maybe play around with a multiplier here)
- Hook up a scalar value of maybe 1 or 2 to tessalation multiplier
Dont see no reason why it shouldn´t work.
The reason, I believe, that you get some psychadelic effects is that your displacement map goes form white to a completely black background with no transition area.