camera animation in Houdini is very easy...
there are tutorials at SESI, 3DBuzz, DigitalTutors and others...and if you've used LightWave you'll have no troubles getting the hang of it...
yeah, far from 0,0,0 things will always get a little tricky - it's a precision error, in Houdini (depending in the scale you're using) anything ~100,000 units and you'll see rounding errors. this is true of just about any application...
there are tricks you can use to get around it but I'm not familiar enough with animating the camera in Terragen to offer any right now...a cool one would be to be able to rotate a planet then you could just animate in Y and the rx/ry/rz