http://wiki.polycount.com/AmbientOcclusionMap?highlight=%28%5CbCategoryTexturing%5Cb%29 EQ talks about his methodology on the wiki. Some good info there.
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http://wiki.polycount.com/NormalMap?highlight=%28\bCategoryTexturing\b%29#Solving_Wavy_Lines Its not hard to get rid of, but it does commonly happen yea.