I'm still experimenting with just how far I can push my terrain tiling method. I finally reached a brick wall with GM4.78 and bit the bullet and upgraded to v9 last night (3x the cost of upgrading from TG0.9 to TG2

) There are of course numerous benefits for me with the upgrade, but the main one was creating TER files from data a *LONG* way out of the UTM zone used for the data projection.
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This is the beginning of a repeat of my very first TG0.9 animation <
http://www.path.unimelb.edu.au/~bernardk/terragen/gallery/mov/gdfo.mov> (6.1Mb) made from a 513 TER of Australia.
The first thing to note is that because the path of the animation will be mainly along the east coast, I've used a UTM zone centred on the path, and then placed the base TER to the west in TG2 (X offset -1.75e+006). What that means is that I have just as must space to the east to potentially fill with data. The two smaller terrains that you can see near the bottom are 90m resolution TERs (4097x4097), with the one on the right being close enough to X=0.
If you watch the animation, there's a tall pointy peak with "snow" on it about half way through. That is the mighty Mt Koscuisko soaring to an impressive 2,200'ish metres

. Here is a quick render of the same mountain from this terrain set.
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That's getting close to an increase in resolution of 2 orders of magnitude.
So it's definitely possible to cover a significant portion of a hemisphere with real elevation data. I've calculated that if I stick to 4097x4097 terrains I'll need around 300Mb of TER files to cover the path of the animation, but I should be able to cut that down using non-square terrains (after a bit of reprogramming of my database)
The hardest part now, is going to be keeping the camera "horizontal".
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This resolution test is looking NW across the Grampians which is near the right hand edge of the second smaller terrain (camera at -424193,-104995,-1.07628e+006)... So far so good... while we may not be able to cover an entire globe with terrain data, it is certainly a lot less limiting than some might think

PS, the base terrain is 1100m resolution, over twice that of my Swiss Alps base.