The *.tex file in gp4 almost contains 4 different DDS format, which used for different detail levels. This is causing LOD and mipmap has close relationships in GP4.
if you set it to 1 it will always use the 512x512 texture (or higher if you use hi-res textures) and it wont switch to lower-res when the car goes farThis is contradictive with basic principal of DirectX engine. Every single texture on-loaded (non-DDS format with stock mipmaps), will be self-created as 9-level mipmaps to video memory. That's why we need bilinear/trilinear filtering to create smooth mipmap texture for different depth-buffer level (also commonly called z-buffer).
On GP4, LODs are has ranged 0 to 1 as default. And because most textures has 4 different detail detail, this range has splitted into 4 regions. If all of these regions are set to near zero, you'll get a lowest LOD setting and lowest texture quality (in Ferrari car, all body will shown just red color without ads and other things).
Gr88ts,
Madman