The title explains it all, it is possible to do this and if so are there any guides out there for it?
Unfortunately, no. You have to have the Deep+Animation version to make animations.
You can try to control TG2 with AutoIt: http://www.autoitscript.com/
I used it to make this: http://www.terralights.de/terralightsII/Movie/mid=14.html
I remember reading about a TG2 plugin called TRaM (version 2 so it runs on TG2) being able to do so.
Initially it was coded as a batch renderer but it will also interpolate/tween between different settings within Terragen.
The developers page is here:
http://www.tecmu.de
search for TRaM u might have to use babblefish or google translate
cheers
rodpacker