Franco-Jo,
First, if you haven't already done so, can you please check that you are using Terragen v2.3 and not v2.0? To get updates you can use the Check for Updates feature inside Terragen, on the Help menu.
In 2.3 use the "Micro Exporter" instead of the "LWO Micro Exporter", but the following advice applies to both. The exported geometry contains every micro-polygon that was rendered in the camera's view. The number of micro-polygons can be the millions, especially at the output image resolution you are talking about, because micro-polygons are built to occupy only few pixels each and many times they are even smaller than a pixel (this is especially a problem with flat or nearly-flat horizons). The higher the image resolution, the more detailed the output geometry will be. It also completely depends on the 'Detail' setting on your render node. 5760 x 1080 will produce an insane amount of geometry at the default detail of 0.5. You could reduce this to 0.05 and you might get something usable, but I go for a smaller image resolution instead. I'd recommend starting with something very, very low resolution so you can see how the process works. Then keeping upping the detail or the resolution until you get the level of detail you want. To start with I would try a render of 576 x 108. Set the 'Detail' on the render node's Quality tab to 0.1. The geometry will probably be light-weight and the renders should hopefully be nice and quick to test the process.
I am not sure why you got that error or whether you edited the filename when reporting the error here, but I just want to say make sure you choose a folder to put the file in, not just enter the name of the file in the edit field. Also, saving to the root C:\ drive on Windows usually doesn't work because of permissions settings in Windows, but I can't tell if that's what happened here.
Matt