JCL,
I found out why my Avatar starts below the terrain...
(running A7.77)
I put a cube below the Avatar and if I jump from the cube across a gap between two terrains, the Avatar moves on the terrain properly... But, there are gaps in the terrain and Edge Artifacts... (Which is why the avatar starts below the terrain, it just so happens that my avatar was located close to a terrain edge and fell down a gap.) You need to know that I believe that this is a problem with A7.77 because these gaps and artifacts do not exist with A7.3... Also, I scripted out the terrain_lod and terrain_chunk variables but as you can see in the image the problem still exists. (With these variables activated the edge artifacts are at all edges...)

I attached a link to an image (see below)... if you can't see the image please let me know and I will forward via e-mail... And by the way ... thanks for your response and your efforts...

There's always some dam problem... Good Luck with this one...
Paul