Thank you EarthQuake! That took care of the problem I was having with another model also! I know next to nothing about MEL scripting, but that script targets the UV borders and hardens them? Is that correct?
The normal map can't account for such extreme mesh normals. Set your edges to hard at your uv borders. Heres a mel script: https://dl.dropbox.com/u/499159/UVShellHardEdge.mel