[RESOLVED] Revenge of Blocky Terrain?

After seeing this thread from this thread from T3D Public Forum, I did a quick test using new terrainblock and terrain editor tools.

Has anyone else noticed the return of blocky terrain in 1.0?

Pic Related.

If I remember correctly this was an issue in some of the Betas if the terrainblock was not located at 0 0 0 in worldspace.

Here's an older thread that looks similar - linky

EDIT
I THINK THAT THIS IS FIXED IN 1.1B2