In my first image, my model displays correctly:

But when I move the model's position along the Z-axis (forward) I get this, yet the Y-axis doesnt change. An if I keep going, the model disappears into the ground:

Any suggestions as to how I can get the model to translate properly visually? Here is how Im calling the model and the terrain in draw():

cameraPosition = new Vector3(camX, camY, camZ);

        // Copy any parent transforms.
        Matrix[] transforms = new Matrix[mShockwave.Bones.Count];
        mShockwave.CopyAbsoluteBoneTransformsTo(transforms);
        Matrix[] ttransforms = new Matrix[terrain.Bones.Count];
        terrain.CopyAbsoluteBoneTransformsTo(ttransforms);

        // Draw the model. A model can have multiple meshes, so loop.
        foreach (ModelMesh mesh in mShockwave.Meshes)
        {
            // This is where the mesh orientation is set, as well 
            // as our camera and projection.
            foreach (BasicEffect effect in mesh.Effects)
            {
                effect.EnableDefaultLighting();
                effect.PreferPerPixelLighting = true;
                effect.World = transforms[mesh.ParentBone.Index] *
                    Matrix.CreateRotationY(modelRotation)
                    * Matrix.CreateTranslation(modelPosition);
                // Looking at the model (picture shouldnt change other than rotation)
                effect.View = Matrix.CreateLookAt(cameraPosition, 
                    modelPosition, Vector3.Up);
                effect.Projection = Matrix.CreatePerspectiveFieldOfView(
                    MathHelper.ToRadians(45.0f), aspectRatio,
                    1.0f, 10000.0f);
                effect.TextureEnabled = true;
            }

            // Draw the mesh, using the effects set above.
            prepare3d();
            mesh.Draw();
        }

        //Terrain test
        foreach (ModelMesh meshT in terrain.Meshes)
        {

            foreach (BasicEffect effect in meshT.Effects)
            {
                effect.EnableDefaultLighting();
                effect.PreferPerPixelLighting = true;
                effect.World = ttransforms[meshT.ParentBone.Index] *
                    Matrix.CreateRotationY(0)
                    * Matrix.CreateTranslation(terrainPosition);
                // Looking at the model (picture shouldnt change other than rotation)
                effect.View = Matrix.CreateLookAt(cameraPosition,
                    terrainPosition, Vector3.Up);
                effect.Projection = Matrix.CreatePerspectiveFieldOfView(
                    MathHelper.ToRadians(45.0f), aspectRatio,
                    1.0f, 10000.0f);
                effect.TextureEnabled = true;
            }

            // Draw the mesh, using the effects set above.
            prepare3d();
            meshT.Draw();
            DrawText();
        }
        base.Draw(gameTime);
    }

I'm suspecting that there may be something wrong with how I'm handling my camera. The model rotates fine on its Y-axis.