I believe John Citron explained to you earlier the differences in resolution between 1 arc-sec, 1/3 arc-sec, and 1/9 arc-sec data sets. Each has an inherent error in their height data. As a result, track grades more often than not, need to be adjusted in 'Surveyor' manually. The 'cut and fill' method emulates real life track construction. Close examination of map data (I use USGS 1:24000 7.5 minute 'quad' maps) will reveal surveyed elevation reference points along the track grade. These points will be indicated with a small triangle or an X at each location. Once a Trainz map has been generated and imported into Trainz, open the map in 'Surveyor' and locate the relevant elevation marks along the route. Using your height adjustment tools in 'Surveyor', set each point to the indicated elevation. Remember, a USGS map uses feet an tenths to indicate elevation; 'Surveyor' uses meters; so you must convert each point to meters. Now you can adjust the grade between each point. I find Google Earth images very helpful at this point in determining where cuts and fills are located.
It is an outright fallacy that TransDEM can lay down a ready to run route. At an absolute minimum, one must lay down and smooth the route grade. There is no way around this fact. There is little one can do in TransDEM to avoid this, since attempting to smooth a grade within a TransDEM generated map is difficult and tedious. 'Surveyor' tools handle that job much easier, once the map is exported. There have been several excellent threads posted in the Forums which deal with grades and how to handle them. A Forum 'Search' may help you some.