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One such tool is "TransDEM", already mentioned by Paulsw2 before. It is payware and it is an "all-in-one" tool. TransDEM does exactly what I described above with much built-in automation: It acquires map or aerial photo clippings from a map tile server (which is one of several options for map sources), retaining geographic position and scale, re-projects to UTM, creates multiple instances of "Basemaps", called "UTM tiles" in TransDEM, paints them with matching textures from the topo map or aerial imagery, and inserts them into the Trainz route, at the proper position. With TransDEM, you will usually shape the terrain as well, using a DEM for this, and the UTM tiles will automatically match the location, thanks to the magic of coordinates....a standard set of programs to work with, e.g., good equipment, but stuff that won't brake the bank
Although there will be distortion in any map, I guess it comes down to how accurate you want your virtual world to be. When using geodata with distorted maps, I can see problems arising because the geodata won't accurately line up with the map. Whether this will be a serious problem for the casual modeller is something I can't answer
You use Google Earth Satellite imagery on your baseboards so that all the railway tracks, buildings and roads are in the right place if you're reconstructing a prototype railroad. Once done, you remove the image.
Look at this excellent example submitted to the 2010 Route Building Competition by Kiwairail. It's one the Competition Gallery web site.
There's been a lot of discussion on these forums in the past about stiching or joining Google Maps oe Google Earth images. Well some kind gentleman has just released a very small program that does all this automatically. The software doesn't need to be installed, in fact you can even run it from a memory stick. That in itself makes it worth a try.
Like any free software, it has its limitations, but it still works very well. I created a very large (48 inches square) photo of a railway yard in Australia and this allowed me to then pick any area and work from there. If you're playing around with Google Maps, or Google Earth, I strongly suggest you give this little program a try.
I've supplied a link to to the program and a three or four page tutorial which I wrote myself, in the Trainz Community Newsletter which has just been released. If you've already downloaded the Newsletter, then you already have the link and the tutorial. If you haven't, may I suggest you do so, because the program is a beauty and the Newsletter contains 24 pages of valuable Trainz information. The tutorial starts at around page 20.
The program only works with Google Maps, but the imagery is almost the same as Google Earth anyway.
Enjoy