Hi Bent,
Looks like you are making good progress! The terrain should be simple. In Settings/ Program Settings/ Terrain, you have an option to set which location you want the Terrain to cut around. By default it will be set to cut the Ground Floor. If you change it to cut around the Foundation it probably will solve the problem. If that creates other problems where there are buildings with no foundation then you could add one to those buildings (wont be seen under the Terrain) or leave it to cut around the Ground floor and cut the Terrain by using the 'Room Divider' tool (basically an Invisible Wall). This will in effect extend the perimiter of the ground floor walls, so the program should cut the terrain around them.
If you have not already done so, it would be good to read through all the options on the Settings/ Program Settings menu, so that you can see all the things that can be changed. You may not want to change anything just now, but at least you will see what can be changed if you want to later.
Re the rendering problem - I do not think Vista is the problem. I am using Vista and have no issues with it at all. What worries me is your comment "when I select the Raytrace button". You should not need to select the Raytrace button, at least not until after the render has completed, by which time it has saved the image anyway. These 'radio' buttons are just to look at the two steps of the process and Modify the viewpoint (so you can raytrace only again from a different angle). On Radiosity you can view and move about the model with shadows etc, while Ratrace shows you the image produced.
Where does yours get to?
Do the two green bars both fill, one after the other?
Do the Steps progress in the Radiosity mode?
Does the Line Count in the Raytrace step increase to maximum selected? These are the number of lines that make up the final image. If you have it set to produce an image 800x600 then, after Radiosity, it should go on to build these steps progressively to 600 and the image should develop on the screen (in place of the Radiosity one), developing line by line from the bottom and from the centre, up the screen. Does this happen?
Do you have the Render settings exactly as on my previouis image?
Specifically, is the Render to File box ticked?
Does Basic render work? This is usually fine for outside images anyway - it is inside where the Advanced (Radiosity) are best.
Sorry about all the questions but they will help to track down why you are having a problem with this.
You can export the screen image also on File/ Export/ 2D image. This will default to TGA but change it to JPG - at least this will be better than creating a PDF and much smaller. This File/Export image however, is not a render, it is still just the screen view similar, to the one you have in your PDF images - how did you produce those? Screen prints presumably.
Anyway if you can answer the questions above we can hopefully solve the render problem for you.
Allan