Guys,

I've converted the file into flat colors for simplicity's sake.
I need to make a meandering stream coming from the distance, crudely created in boolean on B.
I did this in the hopes that the basic structure would show up in the terrain editor, and I could polish up from there. But the cut out doesn't show.
Second, A, I decided just to suspend the water plane between built up terrain shoulders - but it's a crap shoot on figuring out where to put them. The terrain editor gives you zip frame of reference - you can spend an afternoon trying to figure where to create your terrain in relation to your objects - meaning features on the terrain.
I know there's gotta be a better way, but I can't seem to find it in the book. I'm hoping some kind expert will take pity...

Holly