How to integrate knoll to soil? I want to add some knolls onto a ground surface by using textures. Currently it looks terrible and I don't know how to integrate it properly. 

What is the best procedure to do this? At the moment the stones do not look integrated into the knoll, there is a sharp border around it and it does not look natural.

I would like to use the bump map of the stone texture and then to texture paint over this bump with the sand texture stamp. How can I realize this in blender?

Additionally I want to work in Cycles. Does it make sense to create the textures in Blender Internal mode at first and then add the created texture to a material in Cycles mode? 

I suggest this method because the handling of texturing is much easier in Blender Internal than in Cycles.

The current picture is like this:
Using cycles textures with an image you can take advantage of the true displace feature available with the experimental feature set





What this does is using a musgrave as factor for mixing both color and displacement textures