Using regular DXT1/DXT5 compression for normal maps also makes it possible to use the blue/alpha channel for storing an additional greyscale texture, e.g. height/displacement maps.
What to do:
1. In the texture properties change the compression setting from TC_NormalMap to TC_Default.
2. In the material, convert your normals from [0...1] to [-1...1] range.
Nice tip mate, thanks for sharing
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