Like the captain of the Titanic once said, “I’m almost there”.
Sucessfully managed to inport my blender model, tried to position it but could not disable height lock
and save scenery would not bring up directory prompt.
Undock the properties window
If you want to dock It use the Project editor group, not the scenery editor 
If you have some spare time this Is an upadated tutorial
Great tutorial. Thanks
is that water your placing it on might be because of that why it won’t work or have you tried in other positions.
Hard to tell but looks like you haven’t placed the object in blender on the level with blender floor.
like this.
