There's a checkbox for that right beside the "Base texture to bake" field. Turn on "Base texture is a tangent-space normal map" and it will account for all of that. This is on the high poly tab.
Hmmm... you're right.... for some reason the SBM exporter is exporting the subdivided mesh using the View Iterations instead of the Render Iterations.... I must fix it, yep.
I've done some more tests and it seems it's the CryEngine exporter that is to blame, not my normalmaps. Good to know I got baking right this time though. Thanks for the help !
Oh, Jogshy, you were right - it was 3dsmax's OBJ exporter screwing up the normals. I exported the same object from Maya and it works fine now... thanks!
@Ben: Thanks for replying, as for the max triangulation problems, Its probably problem in the model, and I am going to remodel it. I will do as you say for mirroring. But for normal map, if you look at the magazine side part, its really crooked and "indented lines" arent in right position aswell. Its should look like this…
Just with my experiance in the engine I'm using, especially when this is going to be right up next to the camera they are going to be issues, but maybe I'll continue for now and work it out a little later.
Thanks, Jogshy! Everything works perfectly! It will save heaps of time for me. Command-line rendering well documented, I just didn't find right page before. Waiting for XN4 :)