'Regular Grid' means that from the top view that the vertices should have an identical distance against their neighbours. Maybe, it has to in the uv-map, too.
Oh ok, now I know that.
In more experiemnts I was able to successfully convert a terrain which had much less polygons. My original model had around 10000 polies, so maybe that was my problem.
You can experiment with a terrain made in MED, create it, convert it (Edit --> Convert To Model), change things, convert it to terrain again (Edit --> Convert To Terrain), to get an idea what MED tolerates and what it doesn't tolerate.
I think that convert to terrain is a good functionality of MED so I hope that I can find out a way to make it work.
Thank you for the reply.