Hey I cant seem to find any information on this problem. I have noticed it been doing it on different models and this isn't the first time. I bake my models in xNormal but when I use xoulis shader I notice tiny lines such as this. I checked my normal map in Photoshop and although you have to zoom in to see them, the lines are there. So this must mean its the actual Normal map. I have tried experimenting with smoothing groups, separating uv's, and different settings in xNormal but have had only slight success when I change use exported normals to harden normals in the LP tab. Anyone know what is causing this? Could it be the way I am exporting my HP and LP models?
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Like marks said it´s color bending which results from using an image format with heavy compression(jpeg)
Try Guruware's exporter/importer .It is miles better than the 3dsmax native WF Obj exporter with loads of options.
Make sure to check smoothing groups in the exporter.
Also are the artifacts showing up in Xnormals viewer?