I'm having an issue with CAW since I updated it. I haven't really used it for a while and when I tried to start editing terrain, nothing happens. It says the terrain editor is active, select a brush. I select a brush, but I can't do anything with it. Any advice or maybe I just need a re-education on using this. I can do everything except edit terrain.
I ran into the same issue just this morning. I found out that it was because I was either zooming out too far or moving the camera too far to the side. Basically, I found that the camera needs to be located over the map or the terrain tool stops working. I hope that makes sense.
I'm completely new to using the program so I haven't quite gotten the hang of using the camera yet.
That solved the problem for me. I hope it helps you.