No problem! Dithering is well explained in this stickied thread: http://polycount.com/discussion/148303/of-bit-depths-banding-and-normal-maps Basically it adds a bit of noise as you convert a texture from 16 bits to 8 bits. This can be beneficial because when that rounding I mentioned happens, you can end up with pixels…
Good questions! 1) You don't have to use a cage when using match by name (it is basically making one for you based off those ray distance values), but I have experienced cage bakes looking slightly better. 2) That would be very surprising if true but I can't speak to that. 3) No, but more geometry means you can get the low…