Hi all,
Oshyan achieved this effect without needing to connect the Compute Terrain anywhere in the object's shader network. The secret is to activate "Use Y for altitude" in the Surface Layer. This causes the Surface Layer to bypass the usual method of computing altitude (where it looks at the distance of the shaded point from its original undisplaced "geometry" point) and simply use the Y coordinate in 3D space.
There are some limitations to this method. It only works as expected if your landscape is near enough to 0,0,0 that planet curvature will not affect the Y coordinate too much. And of course 0,0,0 needs to be at an altitude of 0, which it should be if you have not changed the planet position or radius.
(It should be theoretically possible to achieve this effect anywhere on the planet but you would need to do some extra maths in the object's shader network based on the centre and radius of the planet and might not be able to use the Surface Layer's built-in constraints.)
To round things up... you should put a Surface Layer below the Default Shader (or below the Multi Shader if you want it to cover all parts of the object), and make sure you set "Use Y for altitude" if you want to apply altitude constraints and set "Use Y for slope" if you want to apply slope constraints.
Matt