Hi All,
Thanks for your kind words.
I will try to answer everyones questions. If I miss something let me know.
A little background first. Stormbringer is the demonic hell blade of Elric of Melnibone as described in the books by Michael Moorcock, and it is black. Just in case anyone was wondering why the hell I would make a black sword. 
The Elric books are my favorite fantasy books, and Stormbringer was the first thing to come to mind when I decided to put ZBrush to the test. If you do a Google search for Elric in the Sinking City a painting by Michael Whelan you will see where I got the design from.
Jay, The model the I first imported into ZBrush looked like the sword tutorials starting point, kinda boxy. This was because I used Lightwave modeler to make a rough outline of the blade while I had a scanned image of Mr Whelan’s art work in the background. However, I reshaped it in Zbrush before exporting it as my true base model of about 30,000 polygons.
Glen, the final model in ZBrush was about 3.3 million polygons, too much for even the mighty Lightwave. 
I’m not crazy about the NormalMapper plugin as it seems to do strange things to the quality of my surfaces and I have had no luck using it on my render farm, which basically makes it useless to me.
What I do is generate both a positive and negative displacment maps in ZBrush at 4K resolution using GUV mapping. I can’t seem to keep my Lightwave UV mapping, maybe someone could explain that to me.
Then, in Lightwave, I apply the positive displacement to the surfaces bump channel using normal blending and apply the negative displacement using subtractive blending. You can use pixel blending to reduce noise, but must turn off texture antialiasing for this to work. Then turn on bump displacement for the object and set it to 300mm. You can control the displacement depth with the layer opacity in the bump channel.
Here are the basic tests that I did using this method:


They are low poly, so the displacement map picked up some of the stair stepping that was visible in ZBrush as well. But you can cleary see both positive and negative displacment taking place.
The displacement on the sword would have worked even better had I used my intended base model, however, not knowing what I was doing at first I accidentally deleted the first two subdivision levels from the tool so I could no longer import my intended model into ZBrush to generate ideal displacement maps.
I tried cage to generate a new model but it would spin it’s wheels and then nothing would happen. I was forced to use the lowest subdivision level model I had which was about 209,000 polys which was somewhat distorted due to the sculpting process so the displacement map was less than optimal.
I had to “cheat” on the grip: if you look closely at the grip there is a dull section where I used both bump displacment and the NormalMapper because the displacement map would not dig deeply enough into the handle for reasons stated above.
Fets, here is a render of the sword from within ZBrush. Please excuse my poor ZBrush rendering skills.

If anyone can think of ways to enhance this process please let me know, as I’m sure there are creative ways of blending layers in Lightwave surfaces as well as better settings for ZBrush displacement exports that would work even better.