I had to keep terrain.tdb in the directory instead of moving it out. The unit still worked without it but there was a terrain missing error. There doesnt seem to be a new one in the GNS download.
It works great after that!
I solved this problem by moving the Global texture resolution slider to Very High. This slider is in the Global Options section in FSX display settings. High resolution virtual cockpit was already checked before I did this but the problem was not solved until I moved the slider.