Thanks Rutra, I don't need the walls so vertical, but my real problem is that the .jpg image path (regardless of resolution) is creating jaggies. I can tell because the terrain has pixel shaped jaggies.

As you can see I significantly reduced the steepness of the canyon walls but the problem still remains.

The image I am using to cut the path is creating "lines" and giving a very unrealistic look to the terrain walls.

Now I am wondering if using an image as a terrain map can actually be done in Vue succesfully?