Is there a "Terragen_2.ucr" folder inside your terragen install? And if so, is there 2 folders, Generic and Windows inside that? and inside Generic is there a default.xml file?
As thats the next process it spits out about, where it loads the xml for the default scene and loads it, right after the parts you've shown us yours gives.
also with my thing i gave you, replace the "C:\" with "G:\" as you seem to have it installed to G, not C.