Keep in mind the Unreal will be converting all the normalmaps to a DXT format (usually DXTn) when you import it. What are the compression settings you are using in Unreal?
Hey again, first of this is not an 8 bit normal map issue. Instead this is a very weird thing which I keep on running into when using PNG or PSD formats to save a normal map. When I use TIFF format the banding is eliminated, even if I resave the PNG or PSD files as TIFF. What could cause these issues? They're persistent in…