Where should Z0 be entered? 
The manual says that Z0 is the water surface roughness height and is entered with Heat Exchange items after WINDH, as follows
HEAT EXCH  SLHTC    SROC  RHEVAP   METIC  FETCHC     AFW     BFW     CFW   WINDH      Z0
WB 1        TERM      ON     OFF      ON      ON 9.20000 0.46000 2.00000 2.00000  0.0010
But the preprocessor provides an error message for this, as follows:
Wind roughness height Z0 < 1.E-7 m  Z0=   0.00000 FOR JW=   1
The DeGray example has it located as follows:
HYD COEF      AX      DX    CBHE    TSED      FI   TSEDF   FRICC      Z0
WB 1     1.00000 1.00000     0.3 14.0000 0.00000 0.00000   CHEZY   0.001
The preprocessor seems happy when it is entered here and this is where the model appears to want it:
READ (CON,'(//(8X,6F8.0,A8,F8.0))') (AX(JW), DXI(JW), CBHE(JW), TSED(JW), FI(JW), TSEDF(JW), FRICC(JW), Z0(JW), JW=1,NWB)
location of ZO in control file
Thanks! Jim
manual updated