Oo! It's starting to look like Skyrim! That cobweb texture is way too loose though - it looks out of scale. I can easily fix the poly/tex thing for animation - should I add a few more polys to it for the animation or is 2 polys OK? Can anyone find a better texture? @Fireside: fancy a go? I'm no artist!
I do think that the corner shadows help to take away that pixelated line, but as fireside says, darkening the edges (or all) of the floor texture would do the same job without the need for those extra transparent polys.