I am about two seconds away from never using Unreal again. I have spent hours double and triple checking everything I can think of. These modular pieces are unwrapped to tile perfectly and the smoothing groups are set up properly as well. I have tested the texture multiple times in Photoshop and 3Ds Max to make sure that it tiles seamlessly (and it does). The lightmaps I created following instructions from 3Dmotive and I made sure that they were properly imported into UDK. I have tried everything I can think of and this engine is still giving me a hard time. Can anyone think of what might be going on here? I really appreciate any help I can get.
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http://www.worldofleveldesign.com/categories/udk/udk-lightmaps-03-how-to-fix-light-shadow-lightmap-bleeds-and-seams.php
I remember tearing my hair over seams in Unreal--it's not fun..but likely the new Unreal is moving to Deferred rending, and a lot of these woes will be things of the past!
It has HUGE implications on a full level. 256x256 isn't much... but for 100 of these items alone that's equivalent to a 2560x2560 texture map (I believe Lightmass uses several passes with other lighting data in too, and they will most likely not pack with 100% efficiency)
Turn off the SSAO, ensure lightmap UVs are pixel aligned.