SpeCter, fletch, that is exactly what I want, but this is what I get.
Thinking it might be a scanline issue, I switched over to Mental Ray and managed to get AO that included it, but the normal map came out blank every time.
I tried it out on a few machines at work and it worked on a really old machine we use as a render farm server node, but didn't work on a box that is identical to mine. I also logged into my home machine and it worked there too, never tried it at home before, always just worked around it.
I checked for video card driver updates, they didn't help.
So I uninstalled 3dsmax, cleared out every corner I could, reinstalled it clean, no scripts or plug-ins and tried it, no dice.
Talking to our IT guy he suggested that I turn off Ultra-Mon and any and all other software, aside from UM there wasn't much to disable, but I did it. No dice.
I am sending in a support request to autodesk. Hopefully they can figure it out before I pitch he box in the river.