Create a terrain and go into the terrain editor. Raise the resolution of the terrain as high as you want. Load the height map as a picture into both picture slots. Hit apply. Go to elevation menu and hit smoothing twice. Clip the bottom (or just lower below ground a little). Go to render screen and drop terrain to ground. Adjust the height and size of terrain to taste. Here's a textured version of the height map above. Hope this helps. I or others can help you with details if you want to try this method.

This is not my "second childhood". I'm not finished with the first one yet.

Time flies like an arrow; fruit flies like a banana.

"I'd like to die peacefully in my sleep like my grandfather....not screaming in terror like the passengers on his bus." - Jack Handy