Hallo Boogeyman I had the sme problem too.

when creating the Device variable you need to use the whole name means:

microsoft.direk-x.direkt3d ... .device device = new microsoft. ... device();

or something similar. in the code to the article is alse one using statement missing it is the same namespace as the divice.

I have found a programm that converts the terragen files into .raw heightmaps.