I have no desire to prove you wrong or create confrontation over this. I merely gave my opinion on the documentation, based on my personal experience with the documentation of the other major software I use. So in the interest of peace and productive discussion, lets just go with it being an inadequacy on my part.
I wasn't offended, I was just concerned I was going to become a major pain in the arse. If you are willing, then I will continue.
Ok, lets start from the beginning, step by step....
A. Create a terrain heightmap in photoshop: Check
B. Import heightmap in to MED: Check
C. In MED, open skin manager: Check
take it from there.