Thanks for the reply, I have a few more question regarding Terragen.
What sort of procedural goodness would you have at your finger tips if using terragen to texture/embellish a height field that has already been generated externally from Terragen? Specifically with regards to creating texture masks for valleys and where water would flow - but without running any additional filters that will alter the heightfield?
I've been experimenting with the world machine demo - I'm quite impressed at the moment (apart from the low res world on the demo which isn't great for a proper evaluation). I've imported both a heightfield generated from lidar data and also one from a mudbox displacement map. I'm liking the software - I think the erosion filter is great, and the varying mask outputs. I'm currently trying to work out whether you can gain any of these flowmaps without running the filter and altering the heightfield.
Why do people tend to use both WM and Terragen in conjunction? Is world machine better for some aspects?
I will try Terragen soon - but I've also just bought a house so need to be sure that pick the correct tool(s), hence the caution.

Cheers
Dave