Right now the neatest and fastest terrains possible are memblock matrices, these use Interpolation for ground collision (very fast) and build the mesh inside the engine (neat) AND! - you can avoid the usual matrice bugs (tile edges being too visible for instance) with code and can treat the terrain just like an object. Perhaps the nicest feature though is vertice colouring, you can colour and vertice in a memblock matrice, so lightmaps can be created really easily and they make a huge impact on the look of your terrain. Personally I like to use matrices in level editors because they're not buggy and are fairly easy to use - but taking the matrice data and making a memblock mesh from it is definately a good way to develop your engine.
For a great example of memblock matrices, check out the codebase for Kevils snippets (Kevin Verbeek).
I've never used DB/DBPro's built in collision system for objects, and if I can help it I never will, polygonal collision detection is intensely slow for a real game. I actually used a hybrid interpolated grid system the last time, and it could handle something like 200 collision checks per loop without affecting the frame rate too much - there are much faster alternatives for collision, you just gotta spend time on it.
Van-B
The nature of Monkey was irrepressible!.