Yes I realize that I am a noob but I can't seem to figure out how to morph the terrain. Anybody care to help?

You do mean edit the terrain right?

Edit: if you do mean the above, I suggest either, make a new map, or play with one in Base.rte [make sure to make a back-up].

Instructions[to edit existing map]:
-GO into Base.rte>scenes
-Find Grasslands
-Open it up in a image editing program of choice
-Use the colour chooser tool to choose terrain type.
[Lightest Brown/Beige, top layer of terrain]
[Slightly darker shade of brown put under and on top of Beige colour terrain. (topsoil)]
[Darker than above, lower level of dirt]
[Darkest, bedrock]
[Blue, water] [Yellow, gold] [Tan/Bright beige, sand]
[Dark purple/pink, Background (black background)]
[Bright magenta/pink, Tranparency background(where the backdrop will appear)]
-Paint your terrain
-Save [make sure you already have back-up before this step]

-Load up CC
-Enjoy till bored
-Place back-up back

Advanced:
-Learn to make separate .rte folder
-If none of this makes sense, see this thread: http://forums.datarealms.com/viewtopic.php?f=1&t=16824

Edit 2: Colour guide as provided by Pyrodoom:

Thank you. I just have one question. If I were to paint a mountain on a map and I loaded up that map, would that mountain be climbable, ect...

Climbable only in the sense that it would be there like all other terrain. Actors would not mountain-climb it though.

That is what I meant. Now to start figuring out how to lua script...

Here is something close to it: http://forums.datarealms.com/viewtopic.php?f=61&t=17759