I checked my original terrain.cfg with Lorby Sddon Organizer. It says that encoding is ok. So I looked at the difference between the 2 files.
It turned out that in my file there is a line seperator (CR+LF) in several lines in the Tongass Fjords entries. See attached screenshot.
I think this happened when copying the entries from the .pdf file to the textures.cfg file.
Karl