I posted this in MED-SED area but got no answers.
MED Terrain Import: Explain R*1 + G*1 + B*2

In MED the formula is said to calculate z-position.

I did a simple test by in MED importing a black 1024x1024 height map with one
white dot in it with following results when importing the produced .hm file into WED.
----------------------------
R*0 + G*0 + B*10 - terrain pos at z = 0, size 1024x1024x512
R*0 + G*10 + B*0 - terrain pos at z = 0, size 1024x1024x512
R*10 + G*0 + B*0 - terrain pos at z = 0, size 1024x1024x512
R*10 + G*10 + B*10 - terrain pos at z = 0, size 1024x1024x512

So apparently the formula does nothing for grayscale height maps
or have I totally missed the whole idea of how this works?