So I'm testing normal mapping on mobile but it seems that it's not working on static geometry.
I turned off the 'use normals in simple lightmap' feature (so i could see the tests more clearly) and I turned on mobilenormalmapping in baseengine.ini for SystemSettings, SystemSettingsMobile and SystemSettingsipad2 (im testing on an ipad2)
This is my material setup
This is what it looks like on a dynamic object (mover)
This is what it looks like on static geometry
This test was done on standard May UDK (plus my ini changes)
Here is the package with the material and textures in the test:
Any help or insight would be very much appreciated.