thanks guys, and yes I assumed the 2 component trickery for tangentspace and DXT5, as the id paper also showed the results are best. DXn/LATC would be same/similar as 3Dc.
I was trying to convince of 3dc, but failed. You know how programmers are if they think "its good enough". That, and we have the specs alpha in the normal maps (long story and bleh engine), which Im not sure 3dc would even allow as it is.
3DC and alike are a two component format only. Which means X & Y of the normalmap is stored, and Z can be reconstructed in tangentspace, as it will always "face up a little".
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I think we still use DXT5 on some systems but are phasing that out where possible.
Results vary. Look fugly to me, but ehh.