Hi!
I ran into an problem with the displacement mod. It looks like minecraft. Subsurf is on lv 6.
Seems like there arent enogh faces.
Any ideas?
thx
Put your displacement modifier after your subdivision
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crank subsurf up to 8 maybe? (6 is the soft cap. you can enter it manually or just apply the modifier and add nother)
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Since the displacement feature of cycles is used ( and no displacement modifier 
) just use the always experimental cycles feature Adaptive Subdivision and enable Surface Displacement: to more than Bump only…
Of course a JPG may not be the best selection for the heightmap…
…
…or just scale it a bit down to 0.125 (and using the color here too )*
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