The U.S. Army Night Vision and Electronic Sensors Directorate (NVESD) and the U.S. Army Research Laboratory (ARL) have developed a terahertz-band imaging system performance model for detection and identification of concealed weaponry. The details of this MATLAB-based model which accounts for the effects of all critical sensor and display components, and for the effects of atmospheric attenuation, concealment material attenuation, and active illumination, were reported on at the 2005 SPIE Europe Security and Defence Symposium. The focus of this paper is to report on recent advances to the base model which have been designed to more realistically account for the dramatic impact that target and background orientation can have on target observability as related to specular and Lambertian reflections captured by an active-illumination-based imaging system. The advanced terahertz-band imaging system performance model now also accounts for target and background thermal emission, and has been recast into a user-friendly, Windows-executable tool. This advanced THz model has been developed in support of the Defense Advanced Research Project Agency's (DARPA) Terahertz Imaging Focal-Plane Technology (TIFT) program. This paper will describe the advanced THz model and its new radiometric sub-model in detail, and provide modeling and experimental results on target observability as a function of target and background orientation.