it does. maybe not for that specfic grass texture. pick a grass texture with blend in the name and try again.
the path type things in the grass are created by using alpha

was a map i made and never really got played.... oh well
there are 3 different blend textures in the map which is why there is sand/grass dirt/grass and rock/grass (the vmts all source the same grass texture which is why the grass doenst have strange lines in it.)