I finally figured out why my terrain was not being generated. I wasn't doing the Build All. After doing that I was able to create terrain in two different size cubes. And the Red Line was showing up in both of them whatever that means.
I was just doing the build geometry and that was not enough to generate the terrain. :casanova:

I'm glad you got that far. Now the question is.. can you reproduce your results with a new test map? That's where Red and I just got stuck.

Yessir I did it two or three times to be sure. I was even using the paint brush to raise the terrain, used the vertice mode a little and even used the flattening function.
I moved the terrain icon down lower, closer to the red line.
Going to work with it some more, try to add another layer etc. The real hangup was the first section of creating the terrain. Jiminy there is a lot of info on that one page at UDN.
I made the box 65536 all the way around. I hadn't been able to get terrain in that size at all. It worked this time but it is sure hard to move around in there. May have to try to adjust the camera speed so it will move faster. We will get there.

You were asking if I could do it everytime. Here is a screenie. I made a 4096 sq. box and this is what happened. First off I did a build all right after I added the zoneinfo. As soon as i got the terrain editor populated with the heightmap the terrain popped up as shown. So try a build all before opening up the terrain editor.
A word of warning. As soon as I created the terrain icon I moved it down close to the bottom of the box and the editor crashed.
www.redrummdk.com/images/terrtst.jpg

I was about to give up on the terrain but found some info on the problem I was having.
Always add player starts in the 3d perspective window. It puts the player start at the correct height and the editor likes that.
I was seeing an error on compile that said: Navigation Point not on valid base or too close to steep slope.
Also been playing with adding static meshes, xweaponbase (after the editor update), texture manipulation, clipping brushes etc.
Has anyone figured out if we can hollow a brush out or do we have to build it a wall at a time???