After a lot of digging to find the source of our ‘dirty’ normals problem that was causing very strange speculars highlights on many of our game objects I finally tracked it down to the DXT compression that is being applied to the normal maps at compile time. Initially I wrote a new texture processor to leave them pretty much uncompressed but this led to huge amounts of memory being used in the game (1.2 gb :S) so an alternative had to be found.
This rearranging of the textures is the current solution and while it doesn’t give perfect results they are quite good and let us get away with using nice compressed textures 
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