[T3D 1.0 Bug] Parallax mapped decals - LOGGED

I was just messing around with parallax mapping in T3D and decided to try it with decals in hopes of getting something like what you see in Fallout 3 and newer games when you shoot/hit something. Unfortunately T3D doesn't seem to like it, at least on terrain. I've not tested it on other surfaces yet. This is what I'm getting:Anyone else had better luck with parallax mapped decals? Also I noticed when I was turning the parallax slider up in the material after first adding specular lighting the normal map appeared to swirl around, becoming worse the higher the parallax level.

EDIT: You may notice the specular lighting is sort of smeared across the burn mark, and that's what the swirling effect looks like at a low parallax level.