Hi there,
great project idea!
I'd recommend Ground2K4 by Christian Fumey and here's how I'd proceed:
1. Install USAPhotoMaps -
http://jdmcox.com/ - and use it to download TerraServer topo maps of your area of interest
2. Create georeferenced jpg files with the BigJpeg 2.5 utility available at the same site
3. Re-project the jpg files to the FS-native lat/long projection using the tools and methods outlined in this thread:
http://forums.avsim.net/dcboard.php?az=show_topic&forum=123&topic_id=20484&mesg_...4. Use the created bmp file as a 8-bit background image in Gorund2K4 and start drawing. Aside from adding the water you can also underly it with gravel bar textures and improve on the surrounding land class, never mind adding streams, trails, and roads.
---
Without wanting to negatively impact your creative energy here's a link to some upcoming commercial scenery that will, I believe, include the Kenai peninsula:
http://www.georender.com/Cheers, Holger