In my texture, I try to provide high quality surface detail, so the asphalt and road markings are visible upon close up (like this)
Now I need a normal map to go with it for extra depth. I tried playing with invert settings in photoshop and baking it through the xnormal filter but it just comes out ugly. I'm thinking of going into mudbox and using one of the pre-made brushes to create some kind of bumpy material, but it wouldn't be 100% authentic (i.e it wouldn't capture the subtle rock detail or paint chips).
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And use a detail texture if you want close-up details.
But I understand where you're coming from though. Even though my scene is small, I cut back on the texture resolution to save performance (from 4k texture to 2k) and will use a lot of tiling/instances. But even with the high resolution, it still looks very flat without a normal map.
Ultimately though, look into B2M.
This is not true at all. Static lights affect normal maps plenty and should always be used to sell every surface if it fits within your style.
Also Jordan, pictures of your attempt will help us help.
But static lights still take the normals and spec into account.
I actually couldn't be bothered to use crazybump. Tweaking the texture was way too annoying that I rather sculpt it by hand instead.
Here's what I did instead (the normal map was a rush job).
Gravel is actually a prime candidate for crazybump/substancedesigner/ndo2 and I would recommend that.
You could sculpt this for the most accurate normals but that doesn't seem to be working out for you.
When using image normal map generators, think of creating a bunch of layers of high frequency details, low frequency details and in between, then combining them after wards. Try not to get 1 normal map out of 1 image, you want a bunch of normal maps that describe the surfaces details and then have those combined later.
Standard conversion through CrazyBump and then using output as a normal map could gives nothing more than a visual noise.
Method should depend on:
-game type
-camera type
-output resolution of the screen- for mobile devices it's even not worth to bake so tiny details. More, that will look bad.
example of bad normal map, looks like huge goose bumps + that paint with 5cm of thickness:
http://xbox.create.msdn.com/assets/cms/images/XNA_Racing-Game_02_large.jpg
example of good normal map, not visible at all :
http://4.bp.blogspot.com/-BYMheY3pw0A/UVoHq4Gn4PI/AAAAAAAABCA/DppY2wAzjm8/s1600/Screen+Shot+2013-04-01+at+8.16.46+PM.png