The reddenng is due to texture compression and your flat smooth color diffuse. The blue and green arent matching the red exactly so when you multiply the difference becomes exaggerated. If your diffuse map is more varried you won't see the shift.
So I added a whole bunch of random paint swipes and it fixed the reddening thing. So my plan is to keep diffuse and AO in 2 different textures. Since diffuse is nothing but simple colors, I can make it incredibly small. The AO, specular, and masks will be put into one of those consolidation textures.
Piew piew: Default texture import settings, and material settings. Try using the default ones and see if it works. Still doesn't work? Then you got yourself a problim. If it works with default settings, but not with the custom import settings you specified... then read up on them! Should say something about em somewhere,…