For some reason, it looks like my munge log is not seeing one of my odfs. It claims that it does not exist when I know that it does. I have tried everything I can think of, but it always misses it. Here is my munge log:

ERROR[odfmunge odf\kas2_prop_rock_S.odf]:Could not open (null) for input. DOS reports:
Could not open ..\..\..\worlds\htb\odf\kas2_prop_rock_S.odf for input. DOS reports:
No such file or directory

ERROR[odfmunge odf\kas2_prop_rock_S.odf]:Could not open ..\..\..\worlds\htb\odf\kas2_prop_rock_S.odf for input. DOS reports:
No such file or directory
[continuing]
2 Errors 0 Warnings

WARNING[terrainmunge world1\HTB.TER]:ReduceTerrainTextureUsage: corner discontinuity at (48,80)
0 Errors 1 Warnings

Edit: After munging and remunging several times without actually really doing anything. It is no longer giving me these errors. Does it not read the file if you have it open? This may have been the problem.

yes, that is highly possible

Terrainmunge error is Maximal Layers used 1 texture 1 Layers 2 Texture 2 Layers etc....
Thats comes from the ter.option file

Is in the ODF File a incorrect line? Delete this and make this new!
Or copy the Kashyyk Prop MSH file new in your World folder.
When you munge and you go on STOP it can happen to the file breaks.

Sorry for my English