If I remember correctly, things start to get messed up if your indentations are too deep and at too much of a 90 degree angle. It looks like the the part of the normal map that's messing up is in fact the part on your model where you have some deep, 90 degree indentations. Try making it a 45 degree angle making the distance that it's extruded much closer to the surface.
Hmm, thanks, that seemed to clear up the major issues with it. Though I'm still seeing a few left over artifacts and things slightly misaligned. Nothing that can't be quickly cleaned up in photoshop but is it always this problematic? Or am I just being naive and the whole normal map from highpoly geometry thing is a bit more involving than I first suspected 
anyway:
[Blocked Image: http://www.joeyadey.com/bumptest_normal.jpg]
I personally found this tutorial to be very useful: Very suspect URL but totally safe I guarantee it!.
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