well i did some research and apparently you cannot get rid of the creases in the sky.
You can however use fog to hide it the best you can.

With that information i guess i will write up a basic sky tutorial.

i should have it completed by tomorrow morning.

You can't get rid of the creases? what a rip. :evil:

This may be the same info you already got. This is not my work just a copy and paste from somewhere else.

1) Open up your skyzoneinfo properties in your skybox outside your map.
2) Under ZoneInfo set bDistanceFog to True
- Now that you have fog enabled lets try to match the color of the fog to your sky texture.
3) Under ZoneLight change the color of DistanceFogColor to match the background of your sky. In this case for the desert bg, choose a color which is a lighty tan skin color.
- Now the next part is tricky because it all depends on your own taste.
4) Under DistanceFogColor their should be DistanceFogEnd and DistanceFogStart. This two options are pretty self expanitory. The start value is when the fog starts from the view point, and the end value is how far the fog streches. You can use the end value to your advantage because it is probably the only value you have to configure more than once. But before you do that, set the start value to 1 so the fog can start really close and smooth on out towards the sky (this is sorta how you can get rid of those lines). Okay, now its just up to you to figure out whats the best end fog value for your sky. It took me at least 10 trys running the game to get the feel for it so it shouldn't take you that long to get it right.

hmmm......ill try that
sorry guys theres been some issues so i havent had time to do the tutorial but ill get it to ya as soon as i can

(notice the tag change to [CE])

At least your getting somewhere. It seems I take one baby step forward with 3DS Max then 10 Giant Steps backward. I worked with the Material Editor all day trying to get some textures right on just a friggin cube (6 surfaces) and I can't get it to work right, even with some expert help.
I did manage to get some work done on my map project. That stair function works good even though I did max it out. It's getting there and like you I don't want to just put a map out there I want a good map out there.