ACR ON FINAL TO RNO RWY 16R RCVD AN EGPWS CAUTION TERRAIN ALERT ON A 5 NM FINAL ONE DOT HIGH ON ILS GS. EGPWS SOFTWARE REACTS TO ACFT DSNDING AND 5668FT TERRAIN ON FINAL.

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APCHING FROM THE SE AT 8000 FT OVER FMG VOR; WE WERE CLRED FOR THE VISUAL APCH TO RWY 16R. WX WAS CLR WITH A FULL MOON AND LIGHT WIND. I INTENTIONALLY STAYED HIGH TO GIVE THE MOST CLRNC FROM THE TERRAIN AND WAS FULLY CONFIGURED ON A 6 MI BASE. I DISCUSSED WITH THE CAPT THE TERRAIN ON THE MFD AND COMMENTED THAT WE WOULDN'T HAVE A CONFLICT WITH THE 5088 FT AND 5688 FT PEAKS S OF DICEY. AFTER ROLLING OUT ON A 5 MI FINAL WE WERE 1 DOT HIGH ON THE GS AND PAPI. WE WERE DSNDING AT APPROX 1500 FPM; WHEN WE HEARD A 'CAUTION TERRAIN' WARNING IMMEDIATELY AFTER ROLLING OUT ON FINAL. I IMMEDIATELY APPLIED NEAR GAR THRUST AND STARTED CLBING. AFTER REALIZING WE WERE ON THE LOC; WITH ALL TERRAIN AND THE ARPT IN SIGHT; I DISCONTINUED THE GAR AND GRADUALLY DSNDED TO THE 3 DEG GS BY 1000 FT AGL. A NORMAL APCH AND LNDG ENSUED. OUR CONCERN WITH FLYING THE ENTIRE GAR WAS THE TERRAIN SURROUNDING RENO WOULD HAVE BEEN AN IMMEDIATE ISSUE AND WE BOTH FELT IT WAS SAFER TO CONTINUE THE APCH USING THE ILS AND PAPI'S. THE COM CHART PAGE IS A LITTLE VAGUE AS IT DOES NOT GIVE GUIDANCE FOR A 'CAUTION TERRAIN' CALLOUT; BUT MANDATES THE TERRAIN AVOIDANCE MANEUVER FOR ANY 'PULL UP' WARNING WHEN BEING VECTORED FROM THE SE. IT MAY BE PRUDENT TO ADVISE CREWS NOT TO AIM FOR DICEY WHEN APCHING FROM THE E AND LNDG RWY 16R AS THE GPWS SOFTWARE APPARENTLY DOESN'T LIKE 1500 FPM DSCNT RATES AND THE 5688 FT PEAK WHEN TURNING BASE TO FINAL EVEN IF YOU ARE 1 DOT HIGH ON THE GS.