In FT Pro and Wilbur, a binary file is an uncomrpessed rectangular raster of data. In short, it's a very simple image. Given the material that you're starting from, Ralf's Jhendor tutorial mentioned above is a workable process to use. There appears to be a bug in the most recent update (2.3) that causes problems when using binary files, however.

FT Pro has a tool intended for converting colors to directly to altitudes. Use Image Overlays>>Color to Altitude Conversion and follow the steps indicated.