So far ive gotten a few things in the world editor to work but 2.

1.) How do I apply textures across the terrain? Can I bring my own image files into the editor or do I have to do some fancy trick to make it work?
On that note: Does the world editor have the capability to stretch and decrease the size of the texture?

2.) How do I get grass layed over the terrain? This isnt the biggest of deals because I was planning to make my own grass anyways, but still how do I do that and load my own grass into wherever it should be to place in the landscapes?

any help or advice is appreciated thanx

1) this is in the world editor documentation, FAQ part
yes you can stretch the textures on the ground - there is button "scale" in the material brush window

2) copy the data\grass folder from sdk to your data folder and the launch world editor, go to grass mode and paint using LMB/RMB