TER is a raster format (bitmap, pixels). What you're seeing is a very literal representation of what your contour lines represent. There is literally no more detail than that in the contours, as far as I can see. Any additional "detail" (or smoothness, for example interpolation between lines) would be a guess basically. Literal interpolation. It's a function Global Mapper should have, so I would look for it, and it will give you a smoother, non-stepped result. But again if you look at the output it looks like a literal interpretation of the contour map input.
- Oshyan