All right. Personally I think dxt5nm compressed normal maps look like arse on some situations anyway (diagonal lines tend to have artefacts around them) and I would much prefer an uncompressed, two-channel normal map format to a compressed four-channel format, but I've always sort of been interested in whether or not the red and blue channels affect the green channel and how much, so for both the argument's sake and my own interest, I'm going to commit a short empirical test on the matter.
I will use the Hercules fighter's normalmap as a subject to the test mainly for the reason that I have the uncompressed normal map available from when I made it. The test itself will be performed as follows:
I will convert three files into dxt5nm style maps.
First one will be a typical purple RGB normalmap converted to dxt5nm with nvDXT
>nvdxt -file fighter06-02-normal.png -dxt5nm -quality_highest -nomipmapSecond one will be a per-channel managed RGBA normalmap converted directly to dxt5 since red channel is already moved to alpha and red and blue channel are filled with black in this case.
>nvdxt -file fighter06-02-normal_CLEAR_RED&BLUE.png -dxt5 -quality_highest -nomipmapThird and final will be a file where I was trying to mimick some typical information that could possibly be stored in red or blue channels, so I basically grayscaled the shinemap and used that as "hardness" map, and copied the height map to blue channel, assuming we would want to store something there just for ****s and giggles.
>nvdxt -file fighter06-02-normal_RED=HARD&BLUE=HEIGHT.png -dxt5 -quality_highest -nomipmapI will then detract the green channels from each file, save them as grayscale PNG's and compare them visually, since that will be sufficient for the purposes of the test; if there is a detectable visual difference, then the argument is solved.
This is the test setup. Visual measurements will be done on green channels on each of the three normal maps resulting from different sources.
Here is the hard data:
http://www.mediafire.com/?di4md4mgmrfThis archive contains the images used in the test. Their filenames should be self-descriptive.
Here are the test results:
The file that was converted with the -dxt5nm file has the green channel copied over to red and blue channels for whatever reason, and interestingly (or probably not considering the bit depth differences between different channels on dxt5 format) the channel information differ slightly from each other. The green channel in the middle is, however, visually identical with the second file, which was the pre-channelmanaged file with clean black red and blue channels. However, there is a very slight difference on the filesize between the two saved PNG's, which would mean that the way nvDXT's converter does things with the -dxt5nm flag is not in fact the ideal way and the way of managing the channels manually and saving as dxt5 is the way to go. However, since there is no visual difference that I could discern, this hardly matters.
On the last one, there is in fact some clear difference from the other two, which can only be caused by the red and blue channels, so you were right on this regard. Based on the results of my independent research, I can confirm that apparently uniform or equal channel information on red/blue channels results in the cleanest possible green channel when using dxt5 compression.
Whether that change is enough to ruin the normal map quality is probably heavily dependant on the specific map in question; on a preliminary inspection based on this single map it seems that the strong normal map detail persists, while small/weak detail suffers the most degradation, and the interference from the other two colour channels will bleed over to the green channel to create some additional, unwanted normal detail changes. Not having tested any of these in-game, though, I can't say if this is enough to completely destroy the credibility of the normal maps; however I would probably not be willing to sacrifice even more quality considering that, like I said in the beginning, even dxt5nm looks bad in some situations.
However, it might be more effective to use a slightly larger single file than add another file to be read for things such as hardness value. In that case, something like uncompressed RGB (u888) would be sufficient. Memory-wise the change would be as follows:
Four-channel uncompressed RGBA (u8888 DDS) 100% (of which 50% is used by normals and 50% wasted)
Three-channel uncompressed RGBA (u888 DDS) 75% (of which 67% could be used for normal map and 33% for hardness map)
Two-channel uncompressed map (cxv8u8 DDS 50% (100% utilization, no quality loss)
Three-channel uncompressed RGBA (u555 DDS) 46.875% (67% for normal maps, 33% for hardness map, reduced bit depth for normal maps)
Four-channel compressed RGBA (dxt5nm DDS) 25% (technically only half of the channels gets used, but memory-wise a bit more complex issue).
However, using yet another map for hardness in conjunction with normal maps would look like this:
dxt5nm (normals) + u888 (hardness) 100% (memory-wise completely equal to using a single u8888 for both normal, hardness and optional height informatio, but with more file overhead by using two files instead of one)
dxt5nm (normals) + a8 (hardness as single alpha channel) 50% (66% of the memory used by uncompressed u888 file containing both normals and hardness information, with more file overhead)
dxt5nm (normals) + dxt1 (hardness) 41.67% (comes very close to using a single u555 texture for retaining both normal and hardness information, with more file overhead)
So in a pure numbers game, dxt compressed versions do beat the other options. But considering FS2_Open's tendency for performance being highly dependant on the amount of maps used, what would mean better performance - single file using N amount of memory, or two files using, say, 66% of that amount? It would probably depend on how much video ram is available in the first place, but then there are also quality gains to think of. If hardness maps were added as a feature, then I for one think it would be more beneficial to use a single u888 texture than two compressed files.
This conjecture is purely hypothetical, however, considering this is about a feature that might not appear before the advent of a true material system, if even then.
Nevertheless, concerning the technique of utilizing the empty channelsof dxt5nm files, it appears you were right - it would affect the quality of the normal maps, and most likely the normal map information of green channel would also interfere with the hardness map on red/blue channels, so using dxt5nm to contain both normals and hardness information seems to be out of count.

Additionally, it seems that on retrospect I might have been overeager to criticize you on a hunch, and for that you have my apologies.
It's good to be proven wrong occasionally (even if I'm doing the proving myself). Does wonders for the ego.
