I would say, use MICRODEM (
http://www.usna.edu/Users/oceano/pguth/website/microdem/microdem.htm), go to File -> Open -> Open and Merge DEM, then select the files you want to open. Open them up, and you should see a picture of your terrain. Then, go to File -> Save DEM -> BIL. You must save this file to it's own folder. Once you have saved it as a .BIL, open up BILxSRTM (
http://www.mediafire.com/?jynuzgjw0qt put this program in it's own program file folder, otherwise, you may have problems later), click "Browse" next to the "BIL directory," select the folder you created with your DEM BIL files in it, then, in the "SRTM directory," press "Browse," and select your Railworks path -> DEM -> SRTM, and click Ok. Select 1 arc second, then click Start. If you don't see it find you DEM BIL files in the Dialog Box, then there is a problem somewhere. I had trouble at first, but then once I put BILxSRTM in the MICRODEM folder, it worked properly. I hope this helps!
Aidan
They exist everywhere. You may not see them, but they're there. Awww yeeeaaaahhhh, 20% Cooler! /)