okay ive had a look and a couple of things are wrong and a couple things im not sure if you intended them to be that way. For reference, see
http://bg2redux.stud...exturesAdvanced - everything i suggest is pretty much already in that tutorial on material and textures.
okay, normal map: your alpha is entirely white, which means that you have no X normal... youve only got half a normal map. Secondly, I think you just greyscaled your diffuse for the RGB channels? as the poster above has indicated, you can use the plugin but i see you already have a normal map youd like to use. copy the red channel from pn_arm_phna_NORMAL onto the alpha channel of pn_arm_phna_0n. Copy the green channel from pn_arm_phna_NORMAL onto the red, green and blue channels of pn_arm_phna_0n. That should fix the normal map.
next: your specular - theres nothing technically wrong with this, what was it that was bugging you? its very grey, but theres nothing wrong with that. Im not sure what effect the alpha is having... im not sure what a specular alpha does. perhaps remove that.
next your mao: you're using a tintmask from another material... is this wanted? if not, simply delete the line. if you want greater specular reflection, increase mml_fSpecularReflectionMult, and for a reflective surface you need a fresnel texture (i think thats the one?). the line can be added as follows:
<Texture Name="mml_tFresnelMask" ResName="ad-dagger03f.dds"/>
okay, thats all i can see without looking at it in-game, but i think those fixes should set you straight.