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This is done by first creating a new Paint layer.
Give it a name and choose a size of 1024 and a PNG file type.
Leave the Diffuse channel current as we are interested in color information.
Using the Paint tools at the bottom of the screen, start by laying down a dull beige coat.
Work with the brush size & strength to lay down the base coat.
Next, switch to a brown color and paint some irregular patches.
Try using the brush in conjunction with a stamp.
Finally, add some green to the mix. This is a reptile you can have fun with.
When you are done, save your Mudbox project to disk.
You can also export the high resolution geometry in OBJ format to load and render in 3ds Max.
Make sure the object is selected first before using Export Selection.
More importantly, you want to extract map information to use on the low-poly model in 3ds Max.
For the diffuse color information you just created using the paint tools, it is quite easy:
Right-click the Paint layer you want to export and choose Export Selected.
Give the file a name and save it where the 3ds Max project resides.
If you view the image at this time, you will notice it follows the mapping coordinates set in 3ds Max.
More importantly, a Normal Map needs to be created to make a low-poly model in 3ds Max appear to have more detail that it actually has.
From the Maps menu in Mudbox, choose Extract Texture Maps > New operation.
In the dialog that appears, check the Normal Map option. Note that you can also extract black & white displacement maps.
In the Object List, click the Lizard_Head entry to select the model.
Click the Use Selected and Add Selected buttons in the Target and Source Models section of the dialog.
In the Normal Map Output, choose the 3ds Max compatibility option and give the file a name.
Finally, click the Extract button to create a normal map. The map gets created and saved to disk.
Back in 3ds Max, open the material editor. The model already has a material applied to it.
Show Hardware Map in Viewport is enabled so you can see the effect of the normal map.
Use a bitmap node in the Diffuse channel and select the paint map you created in Mudbox.
At this time though, the effect is far from convincing.
Add a Normal Bump Map to the Bump channel. Choose the Normal image file you extracted from Mudbox.
The effect in the viewport is immediate.
Adjust values such as the Bump level.
If you wish, add some lighting to the scene to enhance the normal bump effect.
You now have the illusion of detail where the geometry is actually quite simple.
Try rendering the scene to see the end results.