Originally, my project was for both random and real world generation, but due to the difficulty of learning L-systems, fractals, etc. needed for working with random world generation, the emphasis is now on building a world from geospatial data.
Building the terrain requires knowing the following characteristics:
1. Elevation
2. Texture
There are two types of terrain images: geospecific and geotypical. Geospecific images as it sounds are taken from a specificlocation and captures specific and sometimes unwanted information such as the time of day. Geotypical textures are generic images that are free from specific artifacts that can be put together to make up an environment.
Roads - From my research, it seems that there are no documented methods for generating three dimensional roads from vector data. Almost all methods are commercial proprietary ones which basically stich the roads into the terrain (vterrain.org). My method is very simple which just puts the two end points onto the terrain.