Hi vrOculate3, Tenkoku Dynamic Sky works on the Oculus Rift
I've been playing around with it in the past week (since receiving my Rift kit) and the demo scene works very well with a small change Justin suggested: On the _controller object in the demo scene there is a script named ten_demo_ControllerFreeCamera.js. In it change the FixedUpdate() into Update() and all works perfectly.
I also did a scene with Gaia and added Tenkoku Sun Shafts to the camera. In order to make that work properly you'll need to manually assign the camera (Tenkoku configuration panel) used by the VR kit (basically your main camera).
Please note that adding a FirstPersonController from Unity Standard Assets (for easily walking through your terrain) causes a lot of issues, at least it does for me. But that's unrelated to Tenkoku.
