What Is Causing This Shadow?

There is a shadow that covers the area of my FP camera that moves when I move, I assume it’s at the clipping plane distance. Normally, it goes away if I deselect the mesh render and cast and receive shadows.
But, it is not going away, what is causing this?
Also, my camera mouse look keeps quitting on my, what causes this?

On a similar note look at this Flash movie and tell me what (if you can) this over exposed area is.
This happens whether the FPC mesh renderer is on or off. It is only evident on the terrain materials.
See the line that extends out in front of the camera and the overly lit area between the view and that line.

144646–5282–$over_exposed_area_106.zip (1.82 MB)

Hi. Did you ever figure out what was causing the over exposed area? It seems like a lightmapping issue combined with maybe a LOD setting either in the terrain (detail draw distance) or something with the camera.