Regarding the USGS data I have a task for you:
We need a TFW file for each image, reading the pixel size and the coordinates from the related XML files
I am generating world files after I reproject the jp2s from usgs.
The jp2s are coming projected in a version of web mercator which has coordinates in meters (easting and Northing) from some defined location... im converting everything into WGS84 (lat/long). After that the world files are all in the right format and ready to go for each tif. The next bit i need to work out is either calculating or extracting the coordinate of the lower right hand corner so i can inject that along with the upper left coordinate into the TMC.
I need to dive into GDAL a bit to work out some of the raster maths that will need doing.
Thats not a bad idea about trying a single level. I have a feeling i need more Ram though..