Personally I would recommend you to use the official importer instead (It produces a much better quality terrain than this plugin).
With the program itself, make sure you’re running the .jar application, not the .java file, and I’ve heard there were some issues with running the program on non-windows machines. Also make sure you heightmap and colourmap are the same resolution and are both a square.
This is not being worked on or supported any more, I would personally recommend you to just use the inbuilt terrain importer, as it does a much better job compared to this plugin. I never managed to figure out how to fix some of the weird artefacts created with terrain using a large scale - the inbuilt importer does not have this issue.
However you are always free to look through the code and make any modifications you wish.