MD2 Lighting Problem

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While other formats support full space (32bit float for each axis) for lighting normals, it's limited in MD2 for the sake of file size.
There are 255 predefined normals, each vertex uses the closest one.
This results in a kind of stepped shading, which occurs especially while animating or at disconnected polygons.
But it's bearable in most cases, so maybe you're facing another problem.

A screenshot might help analysing your problem.