This is the promised specular bumpmapping:

Code:

---

 MATERIAL mtl_bumpspecular
{
	effect=
	"
	#include <transform>
	#include <fog>
	#include <pos>
	#include <normal>
	#include <tangent>

	float4 vecSunDir;
	float4 vecColor;	

	texture entSkin1;	// texture
	texture entSkin2;	// normal map

	sampler sBaseTex = sampler_state { Texture = <entSkin1>; };
	sampler sBump = sampler_state { Texture = <entSkin2>; };

	struct out_specular
	{
    	float4 Pos:     POSITION;
    	float  Fog:		FOG;
    	float4 Color:	COLOR;
    	float2 Tex:   	TEXCOORD0;
    	float2 Bump:   TEXCOORD1;
    	float3 Normal:	TEXCOORD2;
    	float3 Halfway:TEXCOORD3;
	};

	out_specular vs_specular(
		in float4 inPos: 	POSITION, 
		in float3 inNormal:	NORMAL,
 		in float2 inTex: 	TEXCOORD0,
 		in float3 inTangent: TEXCOORD2)
	{
		out_specular Out;

		Out.Pos	= DoTransform(inPos);
		Out.Tex	= inTex;
		Out.Bump = inTex;	// different coordinates required for ps_1_1
      Out.Color = float4(1.0,1.0,1.0,1.0);
		Out.Fog	= DoFog(inPos);
		
		CreateTangents(inNormal,inTangent);
		float3 N = matTangent[2];
		Out.Normal = DoTangent(N) * 0.5 + 0.5;

      float3 P = DoPos(inPos);
      float3 EyeDir = normalize(vecViewPos - P) - vecSunDir;
      Out.Halfway = DoTangent(EyeDir) * 0.5 + 0.5;

		return Out;		
	}


    float4 ps_specular(out_specular In): COLOR
	{
		float4 base = tex2D(sBaseTex,In.Tex);
		float3 bumpNormal = tex2D(sBump,In.Bump);
		float light = saturate(dot(In.Halfway*2 - 1,bumpNormal*2 - 1)); 
		light *= light;
		light *= light;
		light *= light;
		light *= light;
		return base *2*light;
	}

	technique specular
	{
		pass One
		{		
			VertexShader = compile vs_1_1 vs_specular();
			PixelShader = compile ps_1_1 ps_specular();
		}
	}

	";
} 

---

However, here's indeed the shader 2.0 model a better solution - either that, or two passes. Due to the limitation to 4 texture coordinate sets under 1.1, I can not transfer the light coordinates to the pixel shader, which limits the specular shading to a "metal" effect.

You can play with the "2" factor in the pixel shader, or return base + (0.1 + 2*light) for brightening the dark parts of the model.