Sure thing - I uploaded the pictures to a server to ease the pain.

I left them full size hi-res so you can see the difference. First one is fresh loaded terrain with rumples. Second one is after a quick makeover with the terrain tools so you can see just what I'm talking about. Also notice how badly it makes your feet sink into the terrain between the two.
Rumpled TerrainSmoothed OutThe main problem being of course - using the smoothing tool greatly shrinks hills or raises plains. Using the smooth tool over a selected region works reasonably well, but screws up the region boundaries between regions. Not by much, but if you are making something you really want to be awesome when finished... it is going to really stand out when walking along a path.
I'm seriously wondering about file formats. This was never a problem when I used to mess around with this when all we had was the .raw format. I'm wondering if there is something about pixel depth or bits or something that could be affecting things. I remember there was an issue with saving files at 16 instead of 8 bit would create massive spikes in the terrain at one point in time so this is making me think I have some similar issue here. I just don't know.
Does anyone else here use terrain files they have made without any of this 'rumpled' or wrinkled effect? If so, would you be willing to share the general steps used to create them? (i.e. Use blender to make file A -> do thing B in GIMP -> save it as file C -> import it into opensim... or what have you)
Thanks,
- Hap