Yes, I changed the names of the files to:

ltdiff.png
ltdiff_n.png

But, I don't see where it makes much of a differance on the file extentions. The .tga files are smaller..

Still tells me the normal map is missing for skin1..

What I am not understanding is, if MED is suppose to attach the normal map to the model on export in MED it should be with the model on import into WED.

WED I am assuming is looking for the normal map in a WAD file..
so, I put the color map and the normal map in WED, still get the same results.