OK, so you have most of it
.
1. First, I click the TERRAIN DEFAULT - MOUNTAIN SHADING tool. (In NK's tutorial it would be the BORDER DEFAULT tool). CRRECT
2. Now I want to begin my line. First I click the ON button (so it will attach to the edge of the poly) and select the edge of the mountain's footprint, thus beginning my line.CORRECT
3. At this point the Command Box says, "DEL - back, Space - Randomize, L/R Arrows - Depth, U/D Arrows - Strength, T - Trace". I assume this is where I should begin my trace.
CORRECT
4. So I move my mouse to the Command Box and type 'T' (capitalized and without quotations and without hitting ENTER). There are no changes to my line which still only has the beginning of what I want to trace.Mistake on my part, I am now using version 6.20.0

4a: After Clicking T, it will ask for the point you wish to start from. Click again, on the entity where you would like to start, and it will start tracing (you SHOULD see a whitish line cover the line/path where you are now tracing.