I also have a problem with splatting. Here's a screeny...
http://willhostforfood.com/users/toasterthegamer/TerrainCompare.jpgWith no splatting it looks like the first image as well. I am not loading any textures though but this use to work before the update.
Edit: NVM i got it to work by doing this..
Land.SetSplattingEnable(true, 1, 1);
Land.SetSplattingMode(true, false);
-Toaster