It's definitely a terraserver error -- and users of topofusion have reported others as well, unfortunately.
We'll be releasing a new version soon (featuring satellite images and auto 3D data download), then after that the next beta version will have a way to 'nudge' certian tilesets so that they correct for terraserver error.
Unfortunately this seems like the only way we can deal with this. Try emailing the folks at terraserver about it too, though. If they hear enough complaints they may fix it.
Thanks for the interest.