Landscape Projection with Blender?

polyp2000 asks: "I am working on a project that requires me to generate 3D terrain maps from bitmapped contour files. I need to then be able to apply a texture over the top of the terrain. I've been looking for a utility that will enable me to convert from bitmap to 3D landscape projection that can be imported into Blender (either VRML or DXF). After googling around I haven't really come up with anything useful. Might seasoned Slashdot readers know of a solution?"