Well I'm getting that exact same problem and nothing is overlapping what else could be the problem ? I tried using approximate under AO and that helped but the shadows are alot darker, even if I turn the passes up to 1 its too light to concider it baking. will try the one I've done so far and just see how it looks in game.

Thats what it looks like with normal baking :-S
Everything else is fine except for pixelated areas

Eeks, well I'm not sure what the issue is if you're sure that the pixelated areas aren't overlapping faces. Try tesselating that area of the mesh, and rebaking it, the face might appear correct in maya but there might be some unseen issue.

I have the same problem with OM. I can't find the spot where the line would turn purple. I have 2.61 version pf blender.

Cmo updated his Blender tools so that now baking with Blender is a very straightforward task. You can download them here:

http://www.modthesims.info/download.php?t=433882

I wrote a tutorial showing how to bake an object using them and posted it in the tutorials section here:

http://www.modthesims.info/showthread.php?t=435938

Thanks! I'll follow your tutorial... =3