It's almost never used... It basically tries to automate the process, and most of the time it just gives a bunch of seperated parts that will look absolutely shitty if you try to texture it. Just use a combination of seams and projection unwrapping which is what every professional modeler does.

Your comments and expert advices are much appreciated :)
More answers I yearn for, you'll will be hearing from me very soon ;)
Thank You!

I have another question, sorry to bother. Is this a good bake? If not how would you do it correctly? http://puu.sh/51uul.png Thank You ;)

Eh... Looks like there is something wrong with the bake: Make sure to recalculate all your normals before baking (this might be why part of your model is black). To do this, select all your vertices in edit mode and press "ctrl+n".

Also, try not to break up the model into so many parts unless it is completely necessary. Always try to unwrap things using the smallest amount of pieces necessary.

Hi,

I tried the method you suggested and now when I click bake, it doesn't do anything is there a reason why that is happening? I did notice some difference after I use "ctrl+n" and it didn't allow me to bake. Any other solutions?

Sometimes blender has this glitch. Try making a new blank black image (try going into and out of edit mode and removing any materials). Re-do the bake afterwards.

Would you be so kind, as to explain or classify what materials you meant, (Examples) Sorry I'm still not very good at blender yet. Thank You :D

Clear any materials: https://dl.dropboxusercontent.com/u/10100459/BlenderImages/clearMaterial.jpg

And make sure to clear the image you currently have in the UV screen.

Hey I fixed it, I appreciate the efforts, I watch several of your clicks on hat making and I followed your instructions, but in the video you said you are suppose to have a 256 by 256, but you went on ahead with 1024 by 1024, saying that you can change it later. I fixed it by going with 1024 by 1024 instead of 256 by 256. Here is the new baked image: http://puu.sh/53jyl.png
Looks much better doesn't it :) Is there anything you would change, I tried my best to make it as little pieces possible, so what you see it's all necessary ;) Thanks for your help :D

Getting good. Also remember to make parts that require more detail larger on the uv screen (and parts that are just small details smaller on the uv screen). UV unwrapping is just like anything else: the more you do it, the better you will get.

Thanks for the advice and support :D, I salute you for that :) I will work on it furiously and hopefully, come back with good results :D Thank you again.

Hi,

Quick question, if you want to make a certain part of a mesh paintable, then you don't have to texture that specific part right?

You should still texture it. Do it like this: http://forums.steampowered.com/forums/showpost.php?p=34536858&postcount=2460

Yeah sorry I mah have miss the guide, but thanks for showing me that, it really helps :D

Hey Helljumper, I'm having some ao problems aswell. I'v recalculated normals but it seems to be a bit dodgy underneath the strings. is it because they are thin? Thanks

http://puu.sh/54Xde.jpg