---

General Settings

-Output path is just were max will save your file to. Its default location is super stupid
-render settings, you can set this to be different then the global settings but i find that i have to fight with it if i touch it. If you set up your scene to render with scan line render er and turn on light tracer (with the normal render option box, it will use those settings) You can use mental ray to render if you wish but I find that it gives me some problems. You can hit setup and change your settings if you wish.

---

Objects To Bake

This spread sheet will show you selected objects
-Padding is the amount of "over spray" in pixels that max will do. It will colour a bit out side the lines so that you don't get bleeding at the seams. I normally leave this at 2 or 3 depending on the texture size.
-Projection Mapping: I'm not sure what these settings do. Just leave them off.
-Mapping Coordinates:
You will want Use Existing Channel. Also set it to channel one. Basically the other options are for taking a texture and baking it into a new layout and channel. (can be super useful but not in this case) I say use map channel one, that is assuming that your texture coordinates are in channel one. (they are by default)
All selected: Meaning do this function for selected objects only.

---

Output

Hit the Add button and select "complete map".
Delete will simply delete the selected output.
Selected Element Common Settings: All of these have to do with saving the image file, Name of file type, Size of texture. Note that The files location depends on where you set it to way up at output path
Target Map Slot: This is asking you if how you would like the resulting image brought back into max. If you choose Diffuse Colour for example max will replace your object's material with the new image. I normally set this to blank.
Baked Material and Automatic mapping: I just leave these alone.

---

Hit Render to bake texture. It might ask you about having no target map slot just say Continue.