I don't have problems with the distance shader very often. It can be a little anti-intuitive but I find that generally once I have my views set up properly I can get it working ok.
For using the distance shader this is my work flow.
1. Add the distance shader
2. Add a new camera (generally I name it node ... (since its got sod all to do with being a camera really

)
3. Double click on the relevant
cloud layer or
surface shader and click in the little square blue button next to the nodes name to open up a new
View Window.
4. Open the Blend Shader (or Distance Shader if its the only shader being used in blend mode) and click on its square blue button.
5. Pause the main 3d preview window
6. In all open View Windows zoom out to a useful height (8km or 16km seems a good place to start)
7. now I can move the "node camera" about and set useful min and max distances.
I'm fairly confident that the distance shader returns values of between 0 and 1 where 0 is black and 1 is white (maybe its the reverse) and can be used in a very similar manner to a normal alpha map.
I'm also becoming "fairly" confident (well not actually, bit of a guess really) that the fractal shaders produce values below and above black and white (0 and 1) which are not (can not?) displayed on the screen. This would be similar to the way HDR images (.exr etc) work in that there is much more pixel value information available than is shown on a computer screen. This would account for clouds appearing where there was no evidence of any relevant seed source since (for example) a value of -1 blended via an other value of -1 will give a final result of 1 (not -2) so an area of fractal coverage that is shown as dark (ie no information visible) in fact dose contain negative data which when blended with more negative data (a blend shader with similar negative dark areas) will produce a positive (ie white-ish).
basically
-1 blend -1 = 1 not -2 or -1
or
-2 blend -2 = 4 not -4 or -2 or 0
(i know the math is technically wrong but I hope you get my point)
I know the above is a bit waffleish but since I don't really know whats going on here its the best I can come up with.Richard