There are any number of ways to convert a digital elevation model (DEM) to shapefile vector contour lines, but most of the ones I’ve come across have had limitations of one sort or another. The best solution I’ve come across is the free program dem2topo; while it only supports a limited number of DEM formats, it has more flexibility in units and simplification than other methods, and the graphical interface is easy to use (unlike some command-line programs).
The program is written in IDL, an interpreted language, and you’ll have to download and install the IDL Virtual Machine first (free, but a 100 MB download, requires registration, and you may get a sales call). DEM formats supported are Canadian Digital Elevation Data (CDED), and nominally the GeoTiff format, but I’ve had some GeoTiff DEM rejected by the program for unknown reasons. NED GeoTiffs from the USGS Seamless Server work fine, and if you can open your DEM in the program 3DEM (which supports a number of DEM formats) and export it as a GeoTiff DEM from there, those should work with dem2topo as well. Once you’ve loaded your DEM into dem2topo:

you can choose contour intervals (meters or feet, regardless of what the original units were), the simplification factor (larger simplifies more, but at the cost of detail), whether to close the outer contours, and whether to display the contours as they’re being processed (for faster processing speed, leave these unchecked. More on these options is available in the helpfile.
Once configured, you have the option of converting the DEM into either shapefile contours, DXF contours, or into the .mp format used in creating maps for Garmin GPS units. For the shapefile format, major/intermediate/minor contour intervals are defined in the DBF file by the same hex code used in the .mp format: 0×0020 for minor contours, 0×0021 for intermediate, and 0×0022 for major . Processing speed will depend on the size of the DEM and level of detail, but don’t expect instant results. Converting the above 10-meter DEM to shapefile contours took well over an hour, albeit on my fairly pokey 2.4 GHz system; more memory also speeds up the process. But the results are worth the time; here’s a blow-up of the shapefile contour map of a very small section of this DEM:

A simple process, and if you run into problems, the help file is well done.
Actual screenshot |
See Real USGS Topo Maps, Aerial Photos And Scanned Maps On Your Garmin GPS WithMoagu:
|
Actual screenshot |
Other posts in the GIS Tools series
- Converting E00 Vector Data To Shapefiles - A Free And Fairly Painless Approach
- Simplifying Line And Polygon Shapefiles
- Converting US Census TIGER Data Into Shapefiles For Free
- Converting Shapefiles and ArcINFO Coverages To AutoCAD DXF Format
- Converting Point Shapefiles To Text/Spreadsheet Format
- Converting Text/Spreadsheet Files To Point Shapefile Format
- An Easier Way To Convert Shapefiles to Text/Spreadsheet Format
- Converting Text/Spreadsheet Data To Line/Area Shapefiles
- Full Resolution Raster Map Combining, Subsetting And Export With The TatukGIS Viewer
- Viewing Vector Data In The TatukGIS Viewer
- The LizardTech Stand-Alone MRSID Viewer
- Converting Raster Area Images Into Polygon Shapefiles
- SAGA GIS 2.0 Released
- ILWIS GIS Is Now Open Source
- AVHRR Analysis Add-On For ILWIS
- Advanced Image Mosaicking With Regeemy
- A Free GIS Viewer (And Cheap GIS Editor) For Windows Mobile Systems
- Updates For MapWindow And Saga GIS Programs
- Updates For Two Open-Source GIS Programs
- Putting Together A Basic Linux GIS Workstation
- Free Online Courses For Open Source GIS
- GIS-Oriented Linux Distributions
- Tabular Terrain Elevation Data
- Quick Data Gridding With QuikGrid
- A Good Introduction To Geospatial Data Analysis
- Converting Digital Elevation Models To Shapefile/DXF Contours
- Fixing "Broken" Shapefiles
- A Simple DBF Editor
- Two Online Vector GIS/GPS/KML Conversion Utilities
- Another Shapefile Repair Tool
- Quantum GIS (qGIS) Version 0.10 Released
- Online Raster Map Georeferencing/Registration With Map Rectifier
- Using The Demo Version Of Global Mapper As A Raster/Vector Data Viewer
- New Stable Release Of MapWindow GIS
- The Big List Of Free Metadata Software I
- The Big List Of Free Metadata Software II
- GIS On A Stick
- ILWIS 3.5 Released
- European Open Street Map (OSM) Data In Shapefile Format
- GISVM - A Virtual Ubuntu Linux GIS Workstation
- A Basic Raster Image GeoMetaData Extractor/Viewer


Actual screenshot
Actual screenshot
what source file formats it supports?
It supports CDED, USGS ASCII DTED, and some GeoTiff.
Global Mapper is good for the same