XNA Terrain Editor

Eric Grossinger released an XNA Terrain Editor.

Functions:
Create or modify heightmaps and color distribution maps.
Rise, lower, flatten or smooth the terrain.
Generate a random terrain.
Paint textures on your terrain.
Day-Night lighting cycle.
Import/Export heightmaps and colormaps
Save/Load Terrain xml files

and more..

You can download it here.
XNA Terrain Editor XNA Terrain Editor XNA Terrain Editor