[Read my following post. The problem is in Lightwave, not Terragen. ]
I edited my previous post because I was writing "texture name" instead of "surface name" which are not the same thing. Sorry for my confusing terminology.
I am not talking about file names. I'm talking about surface names within objects. When polygons are surfaced with image patterns, there is a name associated with the surface. It is these surface names that I suspect are possibly being truncated or too many underscores in the surface names may be causing them to be truncated. Specifically, in the mtl file that comes with an obj, each surface is defined with a number of lines of code. In the example below, the surface named "Concrete-X" is associated with an image in the file "E:/Clients/LenScape/Family/House/Concrete.jpg" and is applied to polygons associated with that surface name. I presume the intervening lines of code describe the surface's various parameters like reflection, transparency etc. and even color when there is no image file associated with the surface.
newmtl Concrete-X
Kd 0.784314 0.784314 0.784314
Ke 0 0 0
Ka 1 1 1
Ks 0 0 0
Ns 400
Tr 0
d 1
Ni 1
Tf 1 1 1
map_Kd E:/Clients/LenScape/Family/House/Concrete.jpg
As for the problem, I think that the surface names "initialShadingGroup" and "initialShadingGroup_Smoothing" were truncated to "initialShadingGroup" so that TG thought that two different surfaces were being assigned the same name. When I rename "initialShadingGroup_Smoothing" to "initialShadingGroupS" the error went away.