Attached Link: http://www.shadedrelief.com/drape/index.html

Go to this link, read the tutorial and download the Zip archive (3.0MB) While He uses Bryce 5, his Archive Zip contains a DEM in 16 Bit PGM format and a Photoshop PSD file. These files can be read on Windows machines and the data can be loaded into VUE - which is how I made the above renders.

The term for this process is called "draping" and it creates the most realistic looking landscapes possible in Vue- as the mapping imagery is the REAL THING as gathered by aircraft and orbiting data satellites.