Do NOT use Bump height in Materials Lab. The terrain will create the bumps by itself. As for a 2D pic of a deer, you have to create a mask that will follow all the contours of the deer and cover the background. In Photoshop, it's a painstaking job of selecting the deer with polygonal or magnetic lasso and then inverting the selection and filling it with black. Or much less tedious job with a filter like Corel's KnockOut or Extensis's MaskPro.

-- erlik