So latest version without Crysis 2. My problem is that when i chose from materials skybox: day 2 for example, water is becoming black, sun is kinda not there, sky is just blue and i cannot see any sky textures even thou they shows up in diffuse, any idea what is happening, i watched a few videos on youtube and none have this issue, or im just doing something wrong? Any help would be appreciated. or better yet can someone write how to set skybox from scratch, i will try to go again step by step

Yes same problem for me too: Changing the skybox in the environment rollupbar doesn't load up the texture.

Running Sandbox 3.4 on Win7 64 (running DX11)

Something I/we are not doing? or a bug?

I have a problem with static skyboxes as well. In my case I imported the TOD settings from the Forest level into my level just to see how things were done. When I changed the sky from Skyhdr to a static one, the sky went completely black.
I set my level TOD back to default and the static sky magically appeared. I also loaded up the Forest level and had the same problem, so I've come to the conclusion that the skybox problems are caused by a setting in the TOD editor (which haven't found yet).

I found a possible work around; see http://www.crydev.net/viewtopic.php?f=326&t=88633&p=960787#p960787

yep. Loading a sky material breaks everything for me.

I've tried it on a different map and finally got it to work (the first map was glitching out). There is a skybox multiplier in the advanced time of day settings which is set to 0 by default. Didn't know about this one. Also the top fog density needs to be set low or to 0.