Thats awesome, i should have checked the wiki first. Edit: I didn't see anything about matching projection distortion between the normal bake and the AO bake, but in thinking about it more, i am assuming that if you tweak the cage projection direction, like you can in Max and Xnormal (and other programs i probably don't…
Yep, it has its limits. It won't fix everything, but it can help in some cases. Yep, pretty specific to max and only if you enable Projection mapping. It's one thing max got right, but then immediately faceplants when rendering AO, calculating edge padding and getting the normal map background color correct, heh. Oh max...…