Right now I have the lightmap res at 256 and in my lightmap unwrap I have no overlapping uv's. Where I'm having the problem there is no break in the unwrap. Any suggestions? This has been driving me crazy.
Edit:I should note it only looks like that if view from a angle, straight on it looks fine.
Edit2: I put the same static mesh in one of the pre build lighting maps(afternoon lighting)and the problem is gone. Though if I add my own point light the problem comes back. Seem to be fine with a dominant direction light.
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I mentioned in another thread that turning the Normal Boost Influence in the World Properties down to 0 may help with a similar issue.
[ame="http://www.youtube.com/watch?v=ntx10JMl9f4"]Fixing Lighting Seams in UDK - YouTube[/ame]
This video gets passed around a bit. It fixes the black seams you get between modular pieces, it could possibly fix the specular seam problem as well but I'm not positive. It works, but it's kind of a best case scenario fix. Your UV islands seem to all be rectangular with straight outer edges so it's doable in this case.
If you look around at some of Epics own maps you'll see this problem present in some areas. At the end of the day the best solution might just be to cover up these seams with a pillar or something.