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This entry was copied from DeeZire's Red Alert 2 and Yuris Revenge INI Editing Guide for the sake of completeness. As it is not our intention to rip off DeeZire's work, this article is subject to a re-write and update with the latest community knowledge.
For further information, please read Inclusion of The Guide.
This determines whether the 'fog' is blended ('yes') or dithered ('no'). These are two methods used by DirectX fog-table emulation to produce specific graphical effects. As far as I can tell, this is unused in Red Alert 2 as the 'Fog Of War' appears to have been disabled although FOG.SHP (the alpha-image used to create the fog) is still in the game files and referred to by the game code.