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It's in the MAX material editor...

I don't understand exactly what this is for and when I try to use it, I get a dialog which I guess should create an MXM file. It never does, Max crashes.

This is the old Maxll way of dealing with materials. It was introduced since a lot of people asked for it.

With this plug-in update, MaxwellMaterial node can be used in two ways: As before, with native embedded Max values or as a reference to a .mxm file. When used as a reference, you can use MXED to edit your .mxm files.

Also, as a little description:
- default creation material type can be controlled through Customize->Preferenced->Maxwell Tab - Maxwell Material group.
- you are asked for an automatic translation every time you switch between referenced and embedded value on the Material node.
- when using MaxwellMaterial as a referenced value type, .mxm's parameters like UV, scale, real world scale and active MXM texture will be used for viewport display. In case of no active texture, a weighted color value will be computed from all layers (or emitters)

For more detailed info about this plug-in update you could have a look here: http://www.maxwellrender.com/forum/view ... 733#227733

Regarding the crash, could you please describe some steps in order to reproduce it? Also, could you please type in your command prompt and paste here the result?
3DMax generates a crash dump report file named 3dsmax_minidump.dmp and it's stored in your temp directory. Could you please send it to us? bogdan.coroi@gmail.com

Thank you for your detailed answer, I will check and see.

I am using the referenced material from max 8 sp3, but so far it hasn't crashed on me. (winxp pro sp2)