Hello and welcome!
Terragen currently only supports raster formats, there is no vector support at this time. Formats supported include GeoTIFF (with georeferencing), ASCII, and several other DEM formats, as well as JP2000, and other standard image formats.
I believe all native coordinate systems are converted for correct planetary projection in Terragen. There is no facility for manually adjusting the reprojection.
We don't have support for vector or table data at this time.
As you may see from those answers, Terragen is primarily focused on visual output and lacks some GIS-specific features. However a good variety of DEM data is supported and there are fairly simple ways around some of these limitations, especially if you have other GIS software. For example you can rasterize your vector files and use them as masks. You can do reprojection to desired coordinate systems in another app. Etc. Global Mapper is a very good companion to Terragen, in fact.
In general I would suggest you take some of your existing data sets and try to load them in Terragen to see how it handles it. Note that georeferencing is not available in the Free version, but you can apply for a 30 day unrestricted evaluation license by contacting support AT
planetside.co.ukLet us know if you have any other questions.
- Oshyan