Hi, thanks for the reply. I managed to sort it last night. It was a combination of lightmap uv's with not enough spacing (hence the bleed), and a the lightmap res being low.
Personally, I'd get out of the habit of relying on blending modes for this kind of detail and just paint it in the way you want. No need to over-complicate things. :)
Hi Linko - What I am interested in is step by step instructions on how to use the script, as the comments in the script file embeded in the .blend were not enough.
LowpolyTroll: the reason the second one is so eye-bleed-neon is because that's the level of saturation you need to get things to look "normal" on the Nintendo DS.