I don't have a recollection of this occurring with removing elements from a terrain. Were you using the Terrain Model > Remove Features command?
Did you try editing the terrain on another machine to see if it was specific to this user?
You may also want to get the latest SS4 update installed (currently 08.11.09.878) from the Software Fulfillment Center to see if it will help with these type issues.
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RE: [OR/IR Ss4] Difficulty removing breaklines from a terrain element.
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