GFHA, you have some extra possibilities using Coverage Areas:
1. Your can shape your terrain directly using the SHP file you brought in as Coverage Area by using RMB (Right Mouse Button) on it and choose Shape Terrain. Then set the absolute terrain height at the blue up-arrow and watch the Coverage Area go up.
2. Secondly, you should use the Smooth Radius property on that Coverage Area to set the maximum distance of grading. There is a drawback on this, because you cannot set the absolute grading, only the grading distance.
Try this and let me know if this gives you better results?
Land Areas and Grading Behaviours are still a Preview technology but already powerfull in that you can use Styles to set the Grading and Grading Materials. You will find Land Areas just below Coverage Areas, when you first activate the Preview technology in the InfraWorks Home screen. In the Grading Style Palet you can set Fixed Width or Fixed Slope and choose Cut/Fill slopes and Materials accordingly. There is also a maximum Grading limit possible. My only wish for the Land Areas is the Shape Terrain option which is already present on Coverage Areas. I will add this to the IdeaStation.
Here you will find a video playlist about Land Areas and Grading behaviours.
