The nonlinear version of the mixed spectral finite difference model of atmospheric boundary-layer flow over topography is reviewed. The relations between the stability of the iteration scheme and its relaxation parameter are discussed. Suitable choice of the relaxation factor improves the computational stability on terrain with maximum slope up to 0.5 or 0.6 in certain circumstances. Examples of relatively high slope terrain are used to test the stability. A two-dimensional version of the model is considered. More detailed simulations are studied and analyzed for a comparison with wind-tunnel flow over periodic sinusoidal surfaces. An application on real topography is given for Bolund hill in Roskilde, Denmark.