i'm afraid i'll have to confirm a lack of expected functionality. either that or user error
.
note that in the image map shader, the projection and size work properly if used only as an image map shader on its own (so it fits properly;D) and works as expected.
also, in the effects tab of the image map shader, it doesn't matter what combination of alpha as opacity or alpha as color i check or don't check, or checking create transparency or not, there's no masking going on. also tried with a .tga 24bit file as well: no luck.
(on a very positive side note, i figured out how to integrate an older .ter into a new planet. see the network below.)
network screen grab and render result: