Some of the digital mapping products use a combination of DEMs and DRGs.
The DRGs (digital raster graphics) are images of USGS paper topos. The 1:24K (or 1:25K) paper topo maps have the following accuracies:
* horizontal: at least 90% within .02 in on map (40 ft on the ground)
* vertical: at least 90% within 1/2 a contour interval
The USGS digitized the paper topos at 300 dpi (dots per inch) or 6.7 ft on the ground to produce the DRGs. The USGS has released these maps to the public for a modest fee (the data is public domain). These maps are available free from websites for many states and are the basis of many (possibly all) consumer digital topo map products.
In the case of NG TOPO!, these DRG maps have been resampled to ~175 dpi to reduce the file size. (Also reduces map resolution.) Don't know what resampling, if any, has been done to the Terrain Navigator maps.
The maps used in consumer GPSes are DLG (digital line graphics) representations of the paper topos. The USGS makes a set of DLG topo maps available on a website free of charge. Presumably these maps are based upon the same data as the paper topos, but I don't know the error specs of the DLGs. (Again one can trade off data-set size for accuracy.)
DEMs (digital elevation models) are available in several resolutions ranging from 90x90 to 30x30 meter horizontal spacing. Don't know what the vertical accuracy is, but a single number representing such a large square obviously misses a lot of detail that might be important to a hiker.
NG TOPO! (and I believe, Terrain Navigator) use DRGs for horizontal detail and DEMs for elevation. Thus it is possible for the contour lines to disagree with altitude readout from the DEM.
Garmin mapping GPSes show an error circle when zoomed in sufficiently on the map display. This error circle includes both the GPS and the map errors. (It is probably a 90-95% probability circle.)
More info at:
http://erg.usgs.gov/isb/pubs/booklets/topo/topo.html
http://erg.usgs.gov/isb/pubs/factsheets/fs17199.html
http://geography.usgs.gov/standards/
Doug