Yes, you must convert the map back to a tif. I posted that as a jpeg so I wouldn't drag half the free world down with a big file.
I see now that Ulco(Dune) is correct, you could use a wider range in grays and use the heightfield multiplier at the displacement tab in the hieghtfield shader to squash it flatter. I need to work more with that. Like I said this was one of my first jobs. I was pretty confused when I did this image and my first renders were hilarious.
The map is an actual place in Alaska. I just used an ariel photo, and "bleached" it out in Photoshop until just the water features remained. Then I used it as a Dem tif(digital elevation model tif)
The water surface is made with two or more "lakes" just below the elevation of the top of the river banks. Crude, but effective.
Let us know if you get lost,
Russ