I have never had probelms scaling terrains. I have never experienced a 'CPU hit' for a large terrain, even for the size your talking about, so I cant help I guess. Just simply scale your terrain in WED. Thats the only advice I could give.
If you want stitched terrain though I would recommend ICE-X, you can find it here, and your terrain problems will be less.
http://www.coniserver.net/ubb7/ubbthread...true#Post206354