The garmin protocol specifies the transfer datum (WGS84 I believe) and we believe that we handle it correctly. Unfortunatley, we've notices that some sets of tiles are offset on TerraServer. A good example is near Tucson where TopoFusion first starts up. As you keep moving east you can actually see where the break is.
We've considered adding some sort of "local adjustment" to bump the tiles (or tracks) by a certain number of meters, but haven't done so, nor figured out how to provide an interface for it.