I am importing a 5M DEM.TIF surface file from GIS. They have already converted it from Meter to Foot, and fixed the Geo Coordinates. The surface should be the low 5000' Elevation, but I am getting it in the 16000'. I am creating Terrain from surface selecting the tif.
That's suspiciously close to a meters to feet conversion. You should review your working units and workflow to verify you're not converting the information a second time. You might also ask your GIS folks to do the same.
This is my/UDOTs working units.
I was thinking that the settings under User Preferences - Raster Manager - Georefrence would fix things but I am getting the same result with whatever I change these settings to.
I wouldn't expect anything under User Preferences to affect it. Check that the Geographic Coordinate System settings are correct in the Import Terrain Model dialog:
OpenRoads will perform unit conversions based on these settings. Be aware that some of the coordinate systems use different units for the horizontal and vertical.