Firstly and most importantly, you do not want to use any vertex alpha or vertex colour on the track, the race line blend and marbles are controlled by vertex alpha and colour. So no manual blending on the track or real road wont work.
Secondly and as equally important, you do have to leave this till last, once you start editing a mesh that has vert alpha values, it will get jumbled up and loose the correct information causing all kinds of funny looking things. If you do have to edit the mesh you will need to go into tools > channel info and clear the vert alpha channel on all objects you edit, then go back and redo the blending.
For terrain blending you can use the vertex paint modifier and set it to paint vertex alpha, right click the object and select object properties, then turn on vertex channel display and in the drop down menu select vertex alpha. In the vertex paint modifier set it to alpha and start painting away. You will only see a shade of black if you are doing it on gmotor materials. But before you do that, have a look at Bink's post here where he mentions using a dx shader so he can see the blend, then change it to a gmat when he is finished.
http://isiforums.net/f/showthread.p...-Tech-pdf...-(-)?p=37082&viewfull=1#post37082
You need to use a lerp vertex alpha shader, any shader in the list that has [t1 lerp t2 etc etc vertex alpha] can be used to blend. *Note, don't be confused by vertex alpha mask, that's a different way of blending and not important for you just now.
t1 will be your base texture, t2 will be the texture you blend in.
*A tip, you want to be careful with what you blend with what, some shader-texture combinations don't blend well, ie, you cant blend the grass with the road, because the road shader (using spec, multa and bump) will come out completely different to what the grass shader comes out like and when it meets the road it will look like a solid line, because the blend will be using the spec bump etc from the grass shader.
What you do there is create a separate blend mesh which uses alpha transparency and the decal tag (look at the 'edge' mesh in my test track, it goes between the gravel and the road)
Using what shader you want is user prefrence, most of these new shaders have their purpose in their name, ie, infield grass, road, water, etc. But the other most commonly used shader is Bump Specular map t1, which is used on things like concrete walls and buildings, etc.
In the scene rollout of the exporter is a pair of radio buttons, 'all' or 'selected'. 'All' will export everything you see in the viewport to the scn file, (it wont export hidden objects) and the 'selected' option is self explanatory.
I prefer to use selected for 2 main reasons,
1, I can use the select objects window, switch everything into alphabetical order, then select all and ths will cause the scn to write everything in alphabetical order, otherwise it will write the scn in order of when the object was created.
2, When I only want to export a few items to test them quickly the viewer will load a lot faster. Otherwise you will have to wait forever for the viewer to load the whole track. (we don't have a viewer yet but when we do

)
I hope I haven't confused you, if you are confused, just get your hands into it and start playing, see what you can come up with.