I tried to reply to your email but got a bounce-back. I'm sending now to your forum email...
Edit: nope, got a bounce on that too! Chris, are you specifying bad emails for some reason, or blocking our mail? This is very odd as one is a Yahoo address, the other is Gmail (both bounce with a sort of "account not found" error).
So I guess I'll put my original response here:
There are 2 major reasons for the results you're seeing, neither is a bug. They have to do with the way you have set your constraints on that surface layer. Your slope constraints are very narrow indeed, and this is limiting the range in which the displacement effect can take place. Yes, the color shows up, but not the displacement, and this can be confusing, except that displacement has an altitude component that is then limited by your altitude constraint. The bottom line is that you are very narrowly limiting the effect of your surface layer which controls the displacement area, and thus severely limiting the effect of displacement. I suggest you look at other ways to accomplish whatever your goal is, settings like this are fairly unusual.
There are some other odd settings in here too that suggest you might have arrived at these results through some fairly extensive experimentation, without always having a clear understanding of the results a particular setting is creating. It's generally best to experiment with 1 setting at a time and do iterative test renders to see its effects. Hopefully that is helpful.
- Oshyan