I'm using a terrain shader called MegaSplat found here : www.assetstore.unity3d.com/en/#!/content/76166 It has a displacement feature, as part of the shader, that when activated makes the characters feet sink through the ground(obviously). To fix this issue, Mega Splat has a feature that creates a small plane that is projected on top of the displaced terrain, but after adding the floor plane generator from Megasplat , what happens is that character is just falling perpetually, most of the time anyway.
This would work great in a skating game, but I'm not making one, and It would be really great to use displacement on terrain without the character's feet going through the ground ._. (Still working on the character is why he is naked)
It's actually working now "mostly ", the problem occurred in a specific scene that had lots of bumpy surfaces and slopes. The feet still go through the ground a bit, but if the displacement isn't too huge they don't sink too deep through the ground.