OK Mr. Bug here are the steps I go through when creating a new terrain using tile setter.
1. I create the elevation bit map which is a gray scale image. Store it in a folder on my drive I call elevations.
2. I open the Terrain Editor and create a new terrain with the same name as my elevation bit map and save, then I close the editor.
3. I start the terrain editor again and then under "File" I select "Open" and go to my new terrains folder and select the .oba file ( your_terrains_name.oba)
4. Once the editor has loaded the file I then go to "File" again and select "Import". I brouse to the folder where I keep my elevation bit map files
and select that file and put in the max. elevation hight I want.
5. I then go to "File" and select "Save" and then exit out of the editor again.
6. I go to my editors terrains folder where my new terrain is located ....AHedit\ahiiterr\your_terrains_name_here
And rename the "gndtype.bmp" file to "your_terrains_name.typ".
7. I then start tile setter and load the required files "the .elv and .typ file. then I select "Set Type" and then exit tile setter.
8. I start up the terrain editor again and re open my terrain and it will read the .typ file and create a new "gndtype.bmp" file
and then I save again and begin working on my newly created terrain.
Hope this helps ya out a little.
midi