Hi Ulco. congratulations on getting a new commission, especially since its in a subject that interests you! Its good to get paid to do what you like.
I agree with lots of whats already been written, but I wantted to chime in in my own words:)
Lets assume you have all the resources you could ever need. HA HA, I know, there are always restraints, but just as a starting point...
For me, the *ideal* way to go about this for highest quality results would be to do A full panorama at full size and resolution for each period in time of the landscape. So each historical age, from first to last, of the same landscape as it changes over time.
After getting (4-6-8?) panoramas, then I would take them into photoshop as layers and paint a transparency mask so that the oldest landscape started on the right and ended with the oldest on the left. (I think this is what you were saying) This would give you the best control over where and when one age transitions into another.
I asume erosion and geological transformation will be extreme, i.e. Ice age, continental displacement, (volcanic activity?) Forest growth.
In my photography I always shoot vertical when doing a pano. with a photo camera its very important to remember to make sure the cameras pivot point never moves despite changing views between frames. The same should hold true for a virtual camera in terragen2. Shouldn't it?Anyway, doing so will make stitching much cleaner. I also usually overlap my frames by 1/3rd to 1/2. Its not usually but ensures good coverage. I doubt you'll want need to do that with a render. But Ideally, it would be nice to have that much material to work with when stitching and painting, masking.
I usually shoot HDR panos, so my workflow may be totally different than what your looking for.
For panoramas I use autopano pro
http://www.kolor.com/ I have tested it on a TG pano. I did not run into anything unusual compared to working with photos, that I can recall. It was a while ago.
Just what came to my mind. Its a very interesting and complex technical project. I hope their giving you what you need to do what they want