1. Look at the vanilla alpha maps and use them, they do those transitions. As they are working pretty weird, changing them a lot is sometimes not very succesful.
2. You need to put a shadow under the stones between the stones and the grass.
I guess you used a layer mask to cut out the stones and you have that layer above the grass.
Use the layer mask, invert, now they have the form of the stones in black.
Blur them a few times and set the layer under the stones, but above the grass.
Now you got a shadow on the outer parts of the stones and the texture doesn't look as weird as before.
I'm pretty ill, hope this was understandable.
Dear phuscher, I was one of the first kinds who used fake AO on textures. Most likely the first one.
I know how to, It's still very early wip. And fine adjusting is the last step of the project.
