Ok, so is there a process by which one can create an asset that has tiling textures, AO baking and even overlapping/organized UV's?
It's a workflow I've yet to figure out. Which is why most of my work is mainly just plain complete UV unwraps with no tiling textures or UV's that overlap (since such things have always ruined AO baking). I've always figured you can only do one or the other and not a combination of them.
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Some methods here.
http://wiki.polycount.com/AmbientOcclusionMap
as for UDK, yeah you'd need to muck around with the material editor and load up your second uv set, assign both diff & AO textures, and multiply the two before piping them into the diffuse slot (from the top of my head)
edit: seems like this has already been clarified while I was idling.
If you make a unique unwrap, you are not limited to just using it for AO if you wanted to add some unique details you could mix those in as well with the tiling diffuse. If your are just using AO you can place the AO in the alpha channel of the tiling texture to save space or save it out at a lower resolution.
To create a new uv set in maya, open the uv editor and click the polygons menu, near the top is create empty uv set, click the option box if you want to give it a specific name. On the right end of the menu's is a menu called uv sets, click this to toggle between the different uv sets. Just toggle to that uv set when you do projections/etc to edit/unwrap uv's for that set.
If I remember right, this guy did it: Gnomon Environment Modeling for Games with Nate Stephens The DVD costs a bit, but it is worth it. He shows lots of great tips. It is done in Maya, but very convertable and revelant to Max as well.