> Is the following method the only way to use displacement mapping in 
> Pov-Ray for
> Windows using only freeware?

No, there are almost too many ways to remember them all easily,
depending what you mean by displacement mapping.

POV comes with a few macros for creating mesh objects
from a displacement image and an assumed basic shape.

There are programs like Terragen and Worldmachine.

There are other programs to convert from DEM format
(real data) landscapes, though it's a hassle.

You can manipulate almost any graphic tool available
to output to POV.

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