I don't understand how to do this with displacements. I can do displacements its just I can't figure out how to do this without stretching the textures if you have any tips please tell me.
Displacements stretch textures. That's the end of the story. The texture is locked to the vertices so if you move em, the texture moves. Just try to ensure you don't group vertices too close or too far apart to get uneven scale. If you're not using TF2 as your mod (which it looks like), but another orange box game you can use $seamless_scale in your VMT to make it project the texture at compile time, which will eliminate any stretching. http://www.nodraw.net/2009/12/seamless-textures/
Thank you YM this is for TF2 btw in the background that is a model that I use as my tracing paper since I'm recreating a map from a game I used to love, but thanks for that link very useful. Also how would you do this because I am clueless on what to do on my base textures.
Really? You couldn't tell? It looks good, but I can't see what you are going to do with the palace? A/D?