HRm...not working...any specific setting in the NVidia tools?
Gah.
1. Take the fighter2t-03-normal.dds from the mv_assets.vp. Copy the uppermost layer to a new file. It should look like this:

This layer now has black red channel, normals information on green channel, black blue channel and normals information again on alpha channel (which makes it look semi-transparent).
2. You need to
decompose these channels into their own, grayscale layers; one layer for each channel, which means you'll need to decompose it to RGBA.
When you have decomposed the image, you will need to
copy alpha channel information to red layer, then fill
blue and
alpha layers with white. After doing that, you will need to
compose the layers back to a single layer with four channels (RGBA composing mode). The composed image should look like this:

This should look more familiar as far as normal maps go, right? When you have gotten the original normalmap to
this stage, you can then paste the new parts' normalmaps to the flat lower area of the map.
After pasting the new bits to the normal map, you have two options on how to get the map in-game:
a. Either reverse the process by de-composing the map again, and now move the
red channel to
alpha channel. As far as blue and red channels go, you can either fill them with black, or copy the green channel to them (I prefer this method); it doesn't really matter. After this, save as or convert to regular DXT5 file.
b. Save as or convert to DXT5nm file. Simpler, but I prefer a more of a hands-on approach.
These methods both should produce same results as far as game graphics are concerned. I hope this helps...
As a general rule, it's best to use the DDS file format as the last stage of any mapping process, so I don't know what settings with nvDXT you would need.
If you just need to save the normal-style normal map (purplish-blue) into dxt5nm, do
> nvdxt -file <filename> -dxt5nm -quality_highest -cubicand it should work itself out.