Is it a hard surface model? Are your baking low poly normals averaged? And does your Low poly shape fit snugly to your high poly shape? Also add moar geo of none of that is the case.
The areas you have highlighted are pixel padding, perfectly normal, its important to make sure your normal map works correctly with mip mapping. Apply the normal map to the model and post a screenshot before asking any more questions, its impossible to "debug" a normal map without seeing it on the actual mesh.
Replies
did you put smoothing groups on your meshes before exporting them to xnormals?
Hey thanks for the reply.
I thought I had, but I re-applied just to be sure, and this is what I got.
http://i.imgur.com/6RvEjT4.png
http://i.imgur.com/LIkwm6w.png
Cheers
Also, read this thread: http://www.polycount.com/forum/showthread.php?t=107196
and this one too while you're at it: http://www.polycount.com/forum/showthread.php?t=81154