As Enoki said, you might want to check that your Terrain Mask is correct. Make sure that your Red, Green, and Blue are the rights shades of RGB. If they are even one number off then it won't work. So that means, for an example, that the blue you used should be:
R: 0
G: 0
B: 255
and etcetera for red and green.
Also make sure your image is in RGB mode as well as all layers are flattened. Hope this helps! c: