Baking normals from multires to low poly object.

I’m trying to do a tutorial here http://cgcookie.com/blender/2010/07/15/a-stylized-dragon-part-5/. I’m at the part where I’m supposed to use baking to transfer the bumps from a multi-res version to a uv unwrapped low poly version. I couldn’t follow the steps in the tutorial. I found another tutorial http://cgcookie.com/blender/2010/06/30/normal_maps_blender_2_5/ and couldn’t follow that one either. In the end, when I try to view the low poly version, I don’t see any bumps. I’ve looked in this forum but didn’t see any step by step procedures. Anyone know of a tutorial for beginners to follow on this topic?

Note original dragon is on layer one, multi-res dragon on layer two and lights and camera on layer ten
http://i1130.photobucket.com/albums/m539/Blanco111/Works%20in%20Progress/th_help12.png

This is after baking. The purple color of the normal map looks similar to the one in the original tutorial. But I get completely lost after this.
http://i1130.photobucket.com/albums/m539/Blanco111/Works%20in%20Progress/th_help11.png

This is after I apply the new texture to the low-poly dragon and attempt to view it in texture mode. I don’t see any bumps.
http://i1130.photobucket.com/albums/m539/Blanco111/Works%20in%20Progress/th_help11.png

Note: I can’t use pasteall.org to upload my blend file because it’s 55 mb in size and pasteall limits file size to 30 MB.

i haven’t done any baking with versions after 2.49, but in 2.49 there is a ‘distance’ setting. it looks like that needs to be adjusted.

You’re not going to see bumps with a blank normal map. Show your bake settings and post a link to your blend file

This is the third thread from you with same question, already tried to reply and you opened this one without looking at what i told you. Getting annoying really.

Edit: Actually more than three thread with questions about this damn baking tutorial