Some time ago I also took a second look on editing after a loong break. Ofc my OS had been upgraded to 64-bit Win7. Guess if 3dmax worked in it

Illusion Softworks made the terrain textures with small pieces. I've done my terrains in 2-ways. Back when computers were not as fast as now, I used a little similar way as IS (I think there should be a tutorial made by me somewhere in this site). Now when computerpower in H&D Deluxe is not an issue anymore I've used a different approach. I make the whole terrain from one piece. Molding it to correct shape is then much easier and there's no gaps. If you just add the texture file in it, it will look horrible (except when flying 10km above). To make it look better than the original, assign the texture tiled and make the tiles very small (don't remember the actual setting but trial 'n error is your friend). This way it will look almost real.