The Worldspace dialogue doesn't control the size of the worldspace. The x,y coordinates refer to the in-game map. The size of the worldspace is controlled by the http://cs.elderscrolls.com/constwiki/index.php/Heightmap_Editing. Each quad is a little over http://cs.elderscrolls.com/constwiki/index.php/Oblivion_Units in length, so you would need about 10 quads to create a world space this big. Memory limitations on the CS mean you would probably have to build it up in successive stages, creating a portion of the heightmap, converting it to an esm, expanding it in a plugin, merging it, etc., until you get the size you want.