Changing terrain

I am trying to change the terrain that gets loaded, so I swapped out the heightmap that came with the demo:

with one that I created.

But when I run the application it's completely flat! In order to try to figure out what's going on I modified the TsmTerrain.cfg to use the heighmap as the texture as well and that get's applied correctly for both images! I am sure that I am doing something wrong, but I can't figure of what it is! Here is the contents of the TsmTerrain.cfg file:

GroupName=PLSM2

Width=1
Height=1

Data2DFormat=HeightField
LandScapeFileName=terrain

FileSystem=../Media/paginglandscape2/terrains

NumTextureFormatSupported=19

TextureFormatSupported0=Image
TextureFormatSupported1=BaseTexture
TextureFormatSupported2=Splatting
TextureFormatSupported3=Splatting5
TextureFormat=Image
ImageFilename=terrain

ScaleX=15000
ScaleY=1000
ScaleZ=15000

Deformable=yes
VertexCompression=yes
VertexProgramMorph=yes
VertexNormals=yes

NumMatHeightSplat=4
MaterialHeight1=15
MaterialHeight2=50
SplatFilename0=splatting_sand.png
SplatFilename1=splatting_grass.png
SplatFilename2=splatting_rock.png
SplatFilename3=splatting_snow.png

# where to put camera on load.
BaseCameraViewpoint.x=935.0f
BaseCameraViewpoint.y=24000.0f
BaseCameraViewpoint.z=-432.0f

Baselookat.x=0.0f
Baselookat.y=0.0f
Baselookat.z=0.0f


I figured out that it's because the image had an alpha channel! The PLSM, nor the standard terrain manager liked it! I see that it is looking for an image named terrain.0.0.png, if I want to tile multiple images can I name another terrain.0.1.png?

can I name another terrain.0.1.png
yes.