Answer by garrettar
Problem Solved Myself. I made the server create One prefab (One with a navmesh agent) for your local, and another without a navmesh agent for other characters on the screen.
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Here is a good [shader tutorial][1]. [1]: http://panther.unity3d.com/support/documentation/Manual/ShaderTut1.html
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Nevermind, I cheated by creating a new scene and only placing one terrain to avoid the issue. Not a real fix, but it gets the job done.
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