I can see two possibilities here.
1) Premultiplied alpha versus "straight" alpha. The images from Terragen are premultiplied by alpha. If you comp assuming "straight alpha", then it won't look right at the edges.
2) It looks like it could be a difference in gamma. It's best to comp in linear colour space. After Effects tends not to do this by default, at least in my experience. Try to get After Effects to comp in linear colour space. If that's not possible, you might need to adjust the gamma of the alpha channel, or change the colour space settings where the alpha file is read into After Effects.
Matt