Thanks Kadri, that explanation sounds pretty likely. Maybe GISD doesn't like tiny distances.
With my camera position the scope of the preview window has to be bumped with the [ key to allow for close display.
It didn't occur to me that I might need to revise all the terrain scales for a closeup render like this that is confined to only a few meters of Terragen space.
Next time I move the camera in really close I will try fractal scales more appropriate for what the camera takes in or else keep it big and boost my objects by a factor of 10.