It does not alter view distance or any other background items...just the fog.
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To Use this mod:
Rename the No.Fog 2.5comp.cat/dat to the next highest number in your main X3TC directory.
If your last numbered cat/dat is 09.cat/09.dat then this mod would be 10.cat/10.dat and so on.
To remove just delete the cat/dat from you X3TC folder.
Zip file contains:
No.Fog 2.5comp.cat/dat and a readme text file.
NOTE:
This Mod is free to be reused in your scripts/mods as long as you say thankyou in your topic.
Yay to me i made a tiny mod

Argo.