I tried a fresh installation of a craftbukkit server with multiverse and terrain control.
Seems to fail at generating and reading the configuration file.

13:36:48 [INFO] Starting minecraft server version 1.2.5
13:36:48 [INFO] Loading properties
13:36:48 [INFO] Starting Minecraft server on *:25565
13:36:48 [INFO] This server is running CraftBukkit version git-Bukkit-1.2.5-R1.0-b2149jnks (MC: 1.2.5) (Implementing API version 1.2.5-R1.0)
13:36:48 [INFO] [SkylandsPlus] Loading SkylandsPlus v0.11
13:36:48 [INFO] [Multiverse-Core] Loading Multiverse-Core v2.4-b527
13:36:48 [INFO] [TerrainControl] Loading TerrainControl v1.2.14
13:36:48 [INFO] [Multiverse-NetherPortals] Loading Multiverse-NetherPortals v2.4-b530
13:36:48 [INFO] [SkylandsPlus] Enabling SkylandsPlus v0.11
13:36:48 [INFO] SkylandsPlus 0.11: Enabled.
13:36:48 [INFO] [TerrainControl] Enabling TerrainControl v1.2.14
13:36:48 [INFO] TerrainControl v1.2.14 is now enabled
13:36:48 [INFO] Preparing level "Midgard"
13:36:48 [INFO] Default game type: 0
13:36:48 [SCHWERWIEGEND] java.lang.NoSuchFieldError: a
13:36:48 [SCHWERWIEGEND] at com.Khorn.TerrainControl.Configuration.WorldConfig.(WorldConfig.java:189)
13:36:48 [SCHWERWIEGEND] at com.Khorn.TerrainControl.TCPlugin.GetSettings(TCPlugin.java:118)
13:36:48 [SCHWERWIEGEND] at com.Khorn.TerrainControl.TCPlugin.getDefaultWorldGenerator(TCPlugin.java:80)
13:36:48 [SCHWERWIEGEND] at org.bukkit.craftbukkit.CraftServer.getGenerator(CraftServer.java:929)
13:36:48 [SCHWERWIEGEND] at net.minecraft.server.MinecraftServer.a(MinecraftServer.java:256)
13:36:48 [SCHWERWIEGEND] at net.minecraft.server.MinecraftServer.init(MinecraftServer.java:187)
13:36:48 [SCHWERWIEGEND] at net.minecraft.server.MinecraftServer.run(MinecraftServer.java:422)
13:36:48 [SCHWERWIEGEND] at net.minecraft.server.ThreadServerApplication.run(SourceFile:492)
13:36:48 [SCHWERWIEGEND] Unexpected exception

Oh, you use old version.
Get new from http://dev.bukkit.org/server-mods/terrain-control/

Thank you, i was sure I downloaded the new version, but must have had the old version in my download folder and copied that one. Now everything works thanks. =)