Opensimulator supports PNG, RAW, R32, and unlike SL, TER (Terragen) formats. PNG is the most basic way. You can save or load any of these and convert back and forth using the console commands. PNG seems to be less accurate to me, so I save in r32 when possible after editing in PNG.
This also includes JPG, which produces a map colored by blue/green values.
DreamGrid has a free, open source library of terrains , a link to a dropbox full of them, in all these formats is here.
I always start with a terrain I saved that has various steps made in world. Just below water, at water, different hills. Export it as PNG and JPG, then I use those in a paint program to paint these "swatches" and then blur them with a brush.
Opensimulator Console commands:
Some of these may require a sim restart to show properly.
terrain load - Loads a terrain from a specified file.
terrain load-tile - Loads a terrain from a section of a larger file.
terrain save - Saves the current heightmap to a specified file.
terrain save-tile - Saves the current heightmap to the larger file.
terrain fill - Fills the current heightmap with a specified value.
terrain elevate - Raises the current heightmap by the specified amount.
terrain lower - Lowers the current heightmap by the specified amount.
terrain multiply - Multiplies the heightmap by the value specified.
terrain bake - Saves the current terrain into the regions baked map.
terrain revert - Loads the baked map terrain into the regions heightmap.
terrain show - Shows terrain height at a given co-ordinate.
terrain stats - Shows some information about the regions heightmap for debugging purposes.
terrain effect - Runs a specified plugin effect
terrain flip - Flips the current terrain about the X or Y axis
terrain rescale - Rescales the current terrain to fit between the given min and max heights
terrain min - Sets the minimum terrain height to the specified value.
terrain max - Sets the maximum terrain height to the specified value.
terrain modify - Provides several area-of-effect terraforming commands.
If you have a sim with multiple regions and you want to set all regions on that sim to be from one larger image you can use 'terrain load where regionX and regionY are the coordinates of the bottom-left region.
More information is in help terrain in Opensim's region console
http://opensimulator.org/wiki/Free_Terrains