How do I configure my Terraria world (difficulty, size, seed)?
Terraria world settings are configured in serverconfig.txt in the server root. Key settings: world (path to your .wld file), worldname, autocreate (1=small, 2=medium, 3=large, used when creating a new world), difficulty (0=classic, 1=expert, 2=master, 3=journey), and seed (a specific world seed, or leave blank for random).
To create a new world with specific settings: stop the server, update autocreate, difficulty, and seed in serverconfig.txt, delete or rename the existing .wld file so the server does not load it, and start the server. A new world is generated with the configured settings.
To use an existing world file: upload the .wld file to the server via File Manager, update the world path in serverconfig.txt to point to it, and restart.
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