Great tips in the video that Aaron linked to. But, it misses an essential point and setting.
There are two places to 'enable' grass. First, in the Surface Settings, you you check the box there and define the parameters similar to what is shown in the video.
But, the Render Settings must ALSO enable grass. See attached screenshot of Detailed render settings. If the Grass checkbox is NOT checked there, no 3D grass will be generated. Thus, it doesn't really make sense to fuss with turning 3D on and off in your Surface... except for having it off for grass that is always in the distance as you never want to pay the price of generating 3D that cannot be seen.
Instead, enabling or disabling 3D Grass during the render is the way to go. This is handled by many of the delivered 'scenes' - for example if you select a 'Final' scene, grass will be enabled, whereas a 'fast' scene will have it disabled. Alternatively, enable detail settings as in the screenshot and control the checkbox yourself.
Karl
PS If you are working with an existing project - rather than a new file from the default 18 template - then you would have to define the 3D grass surface yourself. The video shows how to replace an existing grass with a new CR one - as does my screenshot here:
http://archicad-talk.graphisoft.com/viewtopic.php?p=230025#230025
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