The types of normal maps needed for 3d models, and not flat surfaces require the ati plug-in. I'm sure there are other programs out there that do this, but i'm only interested in flat surface bumpmapping, and this is what this is made for really :)
Most important thing in the lighting of the normal map is using entitycolor to "tilt" the normal map, to give the effect the lighting has changed.
EntityColor ground,RED,GREEN,BLUE
Adjusting the red part of entitycolor, will shift the lighting along the x-axis. A value of 128 means the light will be central along the x axis. <128 wil be -x and above with be +x. So Red=255 will make the lighting to the far right.
Same goes for green. anything less than 128, and the light will be shifted up the way, more than 128, and the light will be shifted downwards.
The blue channel determines the height of the normal map, or the distance the light source is. So a low value of Blue, will mean the light will be faint, a high value will mean the light is bright and close. I found that the highest value sometimes doesn't give a good look, but you'll need to mess about with it :)
Hope that helps some people out a bit :)