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[zratchet]

Are there any recommended resources past the top 10 results on Google for tutorials or example algorithms for terrain similar to that in Terraria or King Arthur's Gold?

[Jasmine]

Isn't it just a matter of creating a curve to define the boundary between land and sky?

[zratchet]

hrm, I'm wondering about all the resource generation too.

[st33d]

You would want some cave generation below the horizon. Once you have some good caves going you'll probably get an idea of where resources would be best buried.

Plenty of cave algos in this thread: http://forums.tigsource.com/index.php?topic=5174.msg166909#msg166909

[Momeka_]

Roguebasin ( http://roguebasin.roguelikedevelopment.org ) have some articles about generating terrain. The Procedural Content Generation Wiki ( http://pcg.wikidot.com ) have plenty of articles and links so check them out too.

Also check the procedural generation thread on this forum that st33d linked. Plenty o' good stuff there.

[Ashking]

Keep in mind that there's not just one algorithm to do it all: most landscapes in games like Terraria are made using a variety of algorithms all meshed together. Or, rather, I assume so!

[MattG]

start with a flat surface then add rnd function to each cooridinate Y with a value limiter that creates flatter or more deformed 

[Richard Kain]

A major part of procedurally generated terrain is the limitations of the mechanics in your game. You have to make sure that your terrain generation algorithm doesn't create terrain that your player is incapable of traversing. If there is a limit to how high your player can jump, you have to take that into account.

A method for getting around this is to eventually give the player the ability to get anywhere. (whether this is by a flying power-up, or a drilling power-up, or whatever) But not all games would work with such mechanics. Consider how your player is going to traverse the terrain before starting in on your procedural generation. It might be advisable to play around with a few non-procedurally generated levels just to see what the limitations of your system are.

[Greg]

A couple weeks ago, I generated a heightmap (random number for each point on a grid) and then rendered tessellated triangles from it, just to see if I could do it. (took an afternoon). 

[Jasmine]

hrm, I'm wondering about all the resource generation too.

Choose a random point on the map. Calculate depth below surface. Check there are no other resources in the immediate vicinity. Select resources suitable for that depth. Put resources at that location.

[Nix]

perlin noise

[Ferago]

A couple weeks ago, I generated a heightmap (random number for each point on a grid) and then rendered tessellated triangles from it, just to see if I could do it. (took an afternoon).  

You should try the Diamond-Square algorithm. It's pretty simple and gives a smoother terrain with peaks and valleys instead of just a flat, bumpy surface.

Edit:
http://gameprogrammer.com/fractal.html This site discusses midpoint displacement (probably what you're looking for, OP) as well as Diamond-Square for heightmaps.

[Nix]

perlin noise

[Greg]

A couple weeks ago, I generated a heightmap (random number for each point on a grid) and then rendered tessellated triangles from it, just to see if I could do it. (took an afternoon).  

You should try the Diamond-Square algorithm. It's pretty simple and gives a smoother terrain with peaks and valleys instead of just a flat, bumpy surface.

Edit:
http://gameprogrammer.com/fractal.html This site discusses midpoint displacement (probably what you're looking for, OP) as well as Diamond-Square for heightmaps.

Beautiful link.  That's definitely of interest to me.  Thank you.