Seriously frustrated @ Atlas

Ok, well im glad I went for a walk to cool myself off, because seriously I was going to write a very long and detailed "F-U" to GG for making Atlas so..... Agrivating! So instead im going to plead with someone to help me understand where "I" am going wrong.

So Ive started off small, First I tryed just to export a small (512x512) terrain straight from L3DT.
Doesnt work, it tells me "Terrain block not found" Or it give me this error:

from ntypes.cpp @ 30 "This only works on a power of 2 > 0"

So fine I try it the old fasioned way... manually

I export my hightmap @ 513x513 (one more than 512 (duh))

And I export my texture map @ 4096x4096
To make things easyer (semi) I use the Atlas2 v2.2 terrain import dialog to make the .chu and .atlas
Size:512
Square Size:1
Error Metric: 1 (just to start)
Tree Depth: 4 (again just to try to get ANYTHING in)
Hight Range: 350 (small map)

This part works fine but i posted that just to let anyone who wanted to know, know.
Now is where I do the manual stuff because I have one big texture I use the atlasGenerateTextureTOCFromLargeJPEG("correct/directory/here.jpg", 4, "fileout/directory/here");
With all the directorys filled in.

This part also works fine, after a few seconds (or minutes) of doing whatever it tells me its done.
so now I have randomname_geo.atlas (the one that the creation dialog spat out)
and colormap.atlas (the texture file from the
atlasGenerateTextureTOCFromLargeJPEG)

Now I go back into the creation dialog (easyest way)
Hit Unique, plug in the _geo.atlas and the texture.atlas and hit create...

BOOM! crash every time, doesnt matter if I use the TGEA.exe that comes with it or my own TGEA_DEBUG.exe
the error it gives is

from Platformmemmory.cpp @ 1122 "Not an allocated block!"

Every stinking time, and Ive tryed doing it with different files.. ive tryed 7 times now. complete restarts. Big terrain, small terrain. nothing. and when you spend over 24 hours of letting your computer Idle (for L3DT) on some fairly big terrain and then it doesnt work kinda makes me want to just toss TGEA in the recycle bin and go back to the seriously much more stable TGE.
So can anyone here please tell me what I'm doing wrong?
And the reason that I enter in the command "(blahblah)TOCFromLargeJPEG" is the terrain creation dialog takes TILES.

Oh, and just for S&G I did use the Tile import on one of my terrains and it looked HORRIBLE, the whole terrain texture was tiled over and over, (it was a 4096x4096 also) which made the loading not only horibble, but completly wrong..

Now that I think about it I wonder if I put the texture in the creation dialog in the tiles area and just tell it a Leaf Size of 1... (Whoever named these needs to be put down) I had to look in the source code to figure out what is passed to the command and what it means, its actually well written.

"edit for spelling" I should just run it through a spell checker