FPS Text turning solid when not using TerrainBlock (FlagRush)

Hi all, happy holidays!

I've been playing with the flag rush tutorials lately (lesson 9 in particular). I'm trying to change the type of terrain from a TerrainBlock to a custom terrain class, however as soon as i stop using the Terrain Block, my fps node seems to lose all transparency or texturing (i'm not sure which exactly).

I've set up a clone of the flag rush lesson 9 project, with a text node and a boolean flag indicating which terrain to use: just a simple box (flat terrain), or the default terrainblock. you can change the flag to see what happens to the fps node.

On a sidenote, when i first start up the lesson 9 game, all the posts for the forcefield fence are sideways, even though they are rotated when the fence is set up. i put a flag there too to perform additional rotation so they appear correctly.

I'd appreciate any help with this issue, as i've run into similar 'text blocking' in other projects and haven't had any success resolving the problem.

EDIT: i've only uploaded the project on a free account, so only download it if you plan to help do some debugging

I've shared my eclipse project on rapidshare at: hxxp://rapidshare.com/files/328076212/com.test.flagrush.zip.html

MD5: BF2584F05A82F7988484E59E01D23ED6

(do the replacement thingy with the url)