I read the help file and Denholm's turorial, and read all three threads that came up in the search, but there's nothing on this. I'm having two problems with the elevation filter. First, it is not using the altitudes I specify; I set terrain altitude to 0, then set the filter to do a sine wave of 300 on both axis. However, I get elevations well over 300 when doing that (over 400 in fact).
Also, the transitions don't seem to work right. I set a transition of 1 vertice on all sides, but what happens is that three side have no transition and the bottom side has a constant "transition" of 256. It's kind of funny to have a long, straight ridge of 256 as my "transition."