Installed Unity 5 today and ran into the same problem I have had in every version past 4.3.4. For whatever reason it just doesn't work on my machine. The terrain settings don't take and when I try to set height and flatten the terrain disappears from view. I try moving to view and it doesn't appear. New terrain still shows in the hierarchy, but nowhere in the viewing window. If I undo flatten it reappears, but that leaves me with a completely level terrain that I can not dig into, so basically useless. Just now I got a Unity Editor has stopped working prompt and a shutdown.
My OS is Windows 7 Home 64 bit, 8 gig RAM, Nvidia 650TI graphics. Not sure if this is all a technical issue. Just find it strange that 4.3.4 works like a charm but Unity 4.5 and beyond is problematic. Looked into Unity answers and their solution seems to be toggling between different view layouts. I tried that with no success. I hope this can be resolved because I don't want to be left in the cold when CF is released.