For easy checking, put the output of the distri-shader into the color input of an extra surface shader at the end of the line. You'll see the white of the mask on your landscape. Then experiment with the settings, such as Y and final position ((try position in terrain, without the Y checked). Also try different heights as they might mismatch the heights you see when hovering. I always use such a (final and temporary) test surfacelayer to check out distri-shaders, distance shaders, even fractals.
It should work!
---Dune