This building seems really under-budget polygon use. You really need to take a closer look at the Crysis 2 levels. This currently looks more like PS2 budget. Collect reference of what each thing in this scene should look like, and treat them with the attention they deserve.
Not sure what modeling tool you're using, but I had this problem one time in Max... I think I just selected the polygons of that object by element, then detached it from that element. Seemed to fix the problem. -I would also select all of the verts in that area and weld it. :3
I'll try to lower the polycount but I'm really trying to avoid triangles and I know polygons are needed to hold the Normal map details. I really want to avoid the animated look. I agree about the handle. I will try a different texture for it. Thanks for all your feedback :)
The second time I didn't use optimizer crap, I manually remodelled it. Topogun is something like Polyboost, but its a separate program, not a plugin. You import the highpoly and make polygons over it. I was referring to the "not so small" bullet holes in the front, and the crushed wall part in the sides.
It looks like you have the UV pinned. In the UVEditor window try going to the Polygon dropdown menu and near the bottom click the tool called "Unpin All" That should clear the pinning and let you move your UVs freely. Let me know if this solves your issue.
If going the pure polygonal route(no high-poly bake) then you might want to add some chamfering/beveling on sharp corners, or use vertex shading. You can add a normal map channel in SP and derive your detail from there: wood grain, damage, moss, etc.
Game art is a balancing game between visual quality and technical optimisation. You want to show you are being mindful of texture and polygon limits, but in my opinion showing good art is the most important. Unless you are showing off mobile game art, technical limitations are secondary.
Reset xform on both objects and set affect pivot and center to objects on both of them. Also the object that you are path deforming to the spline may end up not being long enough. Use a symmetry modifier and duoble the length. After path deform delete extra polygons. Win.
I think the venetral surfaces need to be taller to match the concept; the wing span should also be increased. The bow - and especially the keel at the bow - could use more polygons' it's very angular now. The angle of the bow spirit seems too shallow; in the concept it looks to be about 30 degrees.
All polygons on your lowpoly need to have a smoothing group applied or you'll get that faceted look in your bakes. You'll also get that along UV seams and split edges (make sure to weld with a low tolerance to see if it changes anything should smoothing groups not help).