But that's exactly what I did
So if portals can in fact touch displacements, then what the heck is giving me the error?
area portals can touch displacements yes.
they can go through them too.
if you want your areportal to work it will have to go through the displacement, and touch something solid underneath.
basically, displacements don't count towards blocking visibility as far as an areaportal is concerned, so if theres space under the displacement, then you can still get from one side of your areaportal to the other without having to go through it (or another areaportal). that is bad, and something that you have to prevent. so you use nodraw texture on brushes under the displacements, and use them as the walls/floor/ceiling by which you bound your out doors into. aka a large room.