Oh I see, I misunderstood. I think you understand that the Geog Heightfield Shader does not load or provide color, yes? So you mean that it removes color that was provided by other shaders? It looks like there is some severe data interpretation issue going on with height ranges or something. It's possible the IMG is formatted in a way Terragen does not expect, or that no georeferencing data is provided with it, meaning Terragen has to guess the height range or something. We use an open source GIS data loading library called GDAL, so our data interpretation and format support limitations are largely governed by that library's limitations.
Perhaps Ben will come up with some more info.
- Oshyan