$ gunzip filename (e.g. Austin_w.dem.gz)
This will yield a file called austin_w.dem.$ dd if=austin_w.dem of=austin_w2.dem cbs=1024 conv=unblock
This produces a correctly blocked file called austin_w2.dem.Arc: demlattice austin_w2.dem ausdem usgs
This produces an Arc/Info grid called ausdem which is the raw DEM data in geographic coordinates.