Thanks for the input guys but I am still having difficulties. In the past I created/used a Hillshade layer behind a DEM (with a sent transparency %). Using the Hillshade option within the DEM Mosaic itself produces a different look than I'd prefer (a separate hillshade file). **You can see the difference in the attachment**
I guess what I am asking now;
Does anyone know how I can produce a Hillshade output using the Mosaic DEM, without getting the grey output?
Or can I use the Hillshade effect in the Mosaic DEM as suggested, but somehow manipulate it to produce the same thing as a DEM set with a transparency and Hillshade behind? If so, what steps would I have to take to get this function to produce what I desire? Mess with the Z Factor, ect.?
Thanks for the help,
Mike