Normalmaps are used as bumpmaps but its not the same … a greyscaled bumpmap is getting the information over the brightness value. A normal map uses xyz coordinates with the rgb channe. Lets take a look for one coordinate: x axis is in red channel (left/right), red has a max value of 255 that would be x = +1 so the vector is maxed an heading to the right.
The lowest value is 0 that would be x =-1 that means full left. a medium value like 127 means x=0 so the vector looks towards you…
Okay so this need to be interpreted by the software, and actually not all software is capable to do this.
All Directx8 and 9 cards are able to to calculate this in realtime over pixelshader.
Max has a plugin called “Kaldera” that is capable of baking and rendering normalmaps… im sure you will find some freeware max plugins
And you are on the right way about the displacementmaps method… ist a pretty new way of creating highresmodels with a low res cage.
There is a similiar thread here in this forum but also here http://www.cgtalk.com/showthread.php?threadid=77779
And yeah, Zbrush rocks as i found out too !!