from AutoCad3d 2011 map to Autodesk 3d 2010

Thank you for this site..it's the very first time im here.

Im working on a road project, whereby the road is estimated to be 15km long through a very mountanious terrain. There are going to be 2 tunnels along this road.

The main aim is to create an animation of traffic along this road.

This is what i have done..

1. imported the geographical location from google earth into Autocad map.

2. Saved the mesh as a .dwg

3. imported the dwg mesh into autodesk3d max.

now this is the problem..

upon 'opening the file as...' and thus importing this mesh into autodesk3d max, im getting all many errors pertaining to compatability..the only thing i've changed is from 'inches' to 'kilometeres'...

i decide to proceed and alas! the mesh is right infront of me and appears as a white blanket ... but,

when i go to 'compound objects'---> 'Terrain' is not active

However, only the 'blob mesh' and 'mesher' are active on this compound object section.

now, im very new to 3d max and i believe there should be a way somehow to overocome this prob.

What should i do so as to activate this 'Terrain' option..or..what is the best applicable format i should use to store my mesh in so that i can generate and manipulate it on 3d max?

Thanks in advance.