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in cryengine water is tesselated when player is going through, so i think it is possible to tessalete terrain when it interacts with wheels. but...
bman777 in editor's console try to enter those commands r_MotionBlurShutterSpeed 0 r_MotionBlurMaxViewDist 0 r_HDRRendering 3 r_postMSAA 0...
[ATTACH] this is because author use to use weird path to texure folders ../../program files/cryengine 3/game/textures/newroads/Concrete1.tif...