There is a setting to change the maximum distance between points. I can't remember which of the various setting windows you need to change, though, and I no longer have Terramodel in front of me.
I assume you want to contour around some dense vegetation, where there were no survey shots?
I no longer have TMOD either (thank goodness), but won't a closed pline set as a breakline do it?
If not, just let it contour, then add a closed pline where you want the "hole", and clip the lines to it. Make sure you have enough shots near the closed pline, though, or it could pull the contours too much.
Engineering is the practice of the art of science - Steve
The setting that changes the way TerraModel links the dtm can be found under settings, link settings. You can change the maximum edge distance to create the links that you desire.
You can drape a pline using a the drape pline function in the dtm tool menue i belive. Once you have done that you can offset the pline that would then be a set in atleast 0.01, because points in terramodel cannot be directly over top each other. Atleast not without a special tunnel design module made for mine operations. I sugest you design the hole how you will have to dig it, or if the hole is big enough you can use segments of a circle to with a minimal tangent segment between arcs (because you can't have a full circle or an i think a full 180 as an alignmant. well good luck.