@ Trister:

Regarding IceX 2.0, I haven't been able to try it out... Unfortunately there is no demo version. Essentially you have to take a stab in the dark and buy it, though I found this difficult because the entire purchase section is in German. Kindof turned me off from shelling out the cash.

You should give World Machine a whirl. Has a demo version, so it won't cost you a thing unless you want to make something commercial. It also has save capabilities. The pic I posted above was done in world machine - I used it to create a base terrain and export the greyscale map and import that into MED. There's a good tutorial on how to create terrain from start to finish (it uses world machine, though the tutorial doesn't go in depth on it), even using roads. You can skip most of that part of the tutorial as it's pretty complicated and there is much to do in photoshop.

Here's the link for World Machine:
World Machine

I'll try and dig up the link for the tutorial.

EDIT: Here it is!
Roads + Terrain Tutorial using World Machine

It's pretty good, shows you how to create terrain from scratch in WM, bring it into MED, applying the terrain detail map etc. all the way to the finished product in WED.