Update: 11:34 PM
Problem Solved!

I spent quite awhile tinkering with QGIS today and figured out how to merge .img files into a single .bil file to use in ReDem.
1. Start QGIS and select Raster > Miscellaneous > Merge
2. The Merge window will open
3. Check the "Choose input directory instead of files" box.
4. Select the folder where the .img files you want to merge are located for the input files.
5. Select the output file and from the file type drop down menu be sure to select .bil file type and name the output file.
6. Click OK to merge the files.
Then follow Hack's instructions to extract projection to generate the missing .blw file
located here: http://www.3dtrains.com/forums/index.ph ... ap-viewer/