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I'm using v2.71 and I can't find any blend sky option under the world tab. I'm following a tutorial that used an older version of Blender.Where is it in the newest version, or how do I set the Horizon and Zenith colors?

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Make sure your using blender internal.

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It's under the world panel as per screenshot.

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Set your render engine to Blender Render

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Then go to Properties->World tab, enable Blend Sky and assign the colors you want for Horizon and Zenith.

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