I have been having better luck with my topo meshes. It has been working most times now for me without having to displace the two meshes.
I cut and paste the Existing & Proposed meshes into a new file. I select only the areas with grade changes with the marquee tool.
In the 3d window I do the S.E.O. I make sure that the operator's layer is in wireframe and that both meshes have identical depth settings.
I have stopped using bezier splines for the contours. I use only angled polylines. It looks fine printed and is actually much easier and faster to edit. I just add more angle points to make the line look more curved. The splines (curves) seemed to make the meshes too complicated?
Good luck,
Greg