Attempted flipping green and red and switching them around and rerenderd the normal map with the highpoly in the right location. Ended with the same result.
If i understand this correctly (and i probably dont) from the link racer posted
When you look at a tangent-space normal map for a character, you typically see different colors along the UV seams. This is because the UV shells are often oriented at different angles on the mesh, a necessary evil when translating the 3D mesh into 2D textures. The body might be mapped with a vertical shell, and the arm mapped with a horizontal one. This requires the normals in the normal map to be twisted for the different orientations of those UV shells. The UVs are twisted, so the normals must be twisted in order to compensate. The tangent basis helps reorient (twist) the lighting as it comes into the surface's local space, so the lighting will then look uniform across the normal mapped mesh.
Then this should "fix" itself when in a normal map because the way it works with UVs or something?
Also went and got that shader, installed it and applied it to my object and got this, crashing max soon after.
While I was installing it i got some error about drivers, but then it said it installed successfully.
I would update my drivers except that will cause my computer to be unable to run more than 10 minuets at a time, but that is another story.
Kurt, Do the normals have viable seams when you apply them as a diffuse map? it looks like you got rid of them just by using the shader, but i cant do that right now.