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Figured it out myself

but thank you anyway!
Before somebody put much effort in improving, he should figure out if the OverhangTSM can get work with Ogre 1.8.
The TSM was removed, so perhaps the OverhangTSM can cause conflicts with the terrain component, too.
I didn't know there would be a new Terrain system in 1.8 yet, but since you mentioned it, I had a look into it.
From what I read, I believe the following.
The new terrain component is NOT implemented as a scene manager, which is the main difference.
I am quite certain it does not support tunnels, by the way.
Overhang terrain is in fact a scene manager.
That means it is not compatible with the new terrain system,
but OverhangTSM still RUN under Ogre 1.8,
because Ogre 1.8 will still know the concept of a scene manager.
Also, OverhangTSM is basically a modified source copy of TSM.
This is not very clean from a software engineering perspective,
but at least the new terrain component won't kill the project,
because there is no dependency in terms of linking from OverhangTSM to the old terrain component.
In the long term future of course, OverhangTSM should be ported to the new system.
I hope this makes sense.
CallForSanity