Actually....when working with MD..its better to texture the hipoly and then bake diffuse to low poly with dufferent UVs. MD makes UVs how real fabric would work...important for tiled patterns.
So here's where I ended up: I projected the diffuse decals of the } design to the LP object using xnormal. For the "sheer fabric" transparency, I created a B&W tile texture using noise filters and the waterpaper filter in PS. I then projected that tile texture from the HP object to the LP object, and moved it to the alpha…