I have prepared a hi poly version of a rocket and a lo poly version of it.
Both are at exactely the same position. They are 2 separate objects.
In all videos that I have seen, people select both models at the same time, then they click "BakeMode:"->"Normals", and that creates a normal map.
However, I can not select both meshes at the same time, and when I click "Bake", I am getting a "circular reference in texture stack" error.
I have uploaded my Blender file here: http://www.pasteall.org/blend/38512
Would anybody be willing to take a look at my Blender file to see if I made an obvious errors?