I’ve recently had some problems with displaying large overlays (generated from NASA SRTM data) in Google Earth. Although the overlay data I exported was very detailed google earth was displaying a blurry mess which was impractical for my intended purpose. Searching around on the ‘net didn’t reveal anything useful so as a last resort I tried switching from “Direct X” to “Open GL” mode (under tools: options).
Upon restart of the application the quality of my overlay was as it should be. Success! I am still unsure why DirectX mode appears to be faulty, my only guess is that it is because I am using Windows 7 which includes Direct X 11.
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