Thanks, for the links SD. I know how to setup an AO pass in lw, but I can’t find a way to bake it to the texture. Tried with surface baker and it crashes when I set it to bake shaders. Here’s an example from Blender>
http://img.photobucket.com/albums/v195/devalvatora/ao_bake_blender.jpg
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Ok, I stand corrected. I tried the Backdrop Only radiosity method. It produces similar (maybe better), yet still funky results as blender does. Apparently it’s something with the model or uv layot or me doing it the wrong way.



