Can you provide some details about what processors you have?
Also it sounds like terragen is now properly detecting cores, not leaving them out.
Basically you have 1 and 2 cores, but they both have what is called "hyperthreading". I'm assuming the netbook is an atom processor, which has hyperthreading. The only dual cores I know that have hyperthreading are i7's. Most likely Terragen 2 wasn't properly detecting these versions of hyperthreading perhaps, and in the update added them.
Hyperthreading is process where it uses one core, but can be detected as 2 cores and run twice as many processes. The technicals behind this involve how a computer processes material, it often is stuck waiting on something from the harddrive or ram, in which hyperthreading allows for the core to be used while waiting.
Terragen is by default supposed to try to eat up 100% cpu during render to increase speeds.
If you do not want terragen to use the extra cores, in terragen go to Edit->Preferences, check the "override automatic number of cores detection" and set it to what you want.
You can also change the setting on a per render basis, by going to the render tab, then going to the advanced on the render you will be using, and making max cores the number you want instead of 16 (the default).