Node Placement relative to terrain model

I have been testing the functionality of ORD R2 and have found that when you place a node relative to the terrain model it follows that terrain like it should. When place the pipe in between nodes everything looks fine until I go to move one of the nodes then it seem to lock the elevation at what it was first positioned at and does not follow the terrain model to the new location. This causes the end of the pipe to either be recessed in the terrain model (under ground) or projected out of the terrain model. Has anyone come across this? As of now I am using just a generic node to make the pipe connections.