I haven't used it in a little while, but IIRC, you have to click on the blue markers and they then turn red. After you have selected some markers, then use the scroll wheel on the mouse to raise the terrain. It will pull the red markers up, and any markers that are yellow will also be affected by this (less so than the red). Not sure what to do if you don't have a scroll wheel.
As far as manipulating large amounts of terrain at once, I'm not sure of a shortcut. The way I suggested above works great for fine detail work etc, but if you want to make huge mountains it can be time consuming to click all those blue markers. There has to be an easier way. Maybe in the help file there is more info?
Hope that helps.
EDIT - Also, there is a feature to raise the entire terrain to a certain level. Not exactly sure where it is, but it's under one of the tabs up top and I think it just says "raise all terrain" or something. That helps if you want to make valleys/canyons instead of mountains. *** Edited 3/26/2006 9:55:18 PM UTC by MrX***
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