Thin plate spline interpolation is a widely used approach to generate a digital elevation model (DEM) from contour lines and scattered data. In practice, contour maps are scanned and vectorized, and after resampling in the target grid resolution, interpolation is performed. In this paper we demonstrate the limited accuracy of this process, and propose a high resolution processing method (without vectorization) that ensures maximum utilization of information in the source data. First, we discuss the mathematical background of thin plate spline interpolation, and explain the multigrid relaxation principle used to speed up convergence. After, we will show why fine tuning is necessary, especially when contour lines and elevation points are processed at the same time. Finally, our own contour thinning method is described that produces a significant reduction of elevation bias.