It's pretty simple, for future reference (though it seems like you've figured it out now):
In World Machine, get the size of the terrain in meters/kilometers. Load your mask in an Image Map Shader in TG2 and set the size to the same as you found in WM. Set the position to match your Heightfield's position (making sure that the position origin is the same, either left corner or center). Set projection to PlanY. In some cases, as you found, you'll need to flip the image (FlipX or FlipY). You can also tile images here.
To use the image as a "mask", use it as the Density Shader for any other shader, or as the Fractal Breakup input on a Surface Layer (making sure to have Fractal Breakup turned up).
- Oshyan