I've added the raster file for the area and changed the baseheights to float on a custom surface and customized that to 5 (for topography)
Is the reason for "floating" the road 5m above the surface because it seems to be submerged in the surface in places? Are you exaggerating the scene? If so, that is probably the problem. The road should display properly without exaggeration otherwise the road will not render properly. I had better luck draping things over TIN rather then a raster both with and without exaggeration.
I tried the tin with no success. Any other ideas?