Hi Jeremy,
I don't see what is wrong with the images, looks pretty cool to me!
I'd like to take a look at the data so if you don't mind, please upload the necessary files along with the exact command line you used and I'll look at it on Monday. In the meanwhile, try increasing the number of iterations, say to 500 or 1000 and watch the disaster unfold in realtime using the -talk_suma option in SurfSmooth (you might also want to turn the recorder on in SUMA with the 'R' key).
Let me know when you send me data and if the number of iterations had an effect.
cheers,
-z