LODs work fine in real time lighting(statick objects)but they dont work if you bake the lights.
I am doing something whrong?

They are supposed to work, but as you can see that sometimes they dont. Could be the geometry is to thin.

The baked lighting process is supposed to ignore the lod mesh and bake the LOD_0 model or the highest poly one.

Can you post a picture of the before and after please.

Thanks.

Are you sure it's not working? Baking with LOD works as Myke pointed out above, so you won't see the actual change. Works pretty well really

Try running a test level, empty map and one of your LOD items. Then hide the terrain using the option when you hit f11 and press tab to view your poly count. You should then see the polygons of your object and when they change as you move away from it. If you haven't edited the FPE GG's default settings, sometimes, dependant on the size of the object, the distances can be quite high, so you may need to alter them manually by adding the following into your FPE.

;LOD System

disablebatch = 1
lod1distance = 1000
lod2distance = 2000

Change the LOD distance values until it the LOD kicks in at the point you want it to.

Did some test disable sky terrain water only the object on screen and check the poly numbers the non static prezerve theyr LODS but the static ones dont the are backed with the highest posible lod the poly cound dind change no mater how far or near i was to the object whlie in real time even the static ones use theyr LODS

In real time lighting you will see LOD changes from all objects that have them. Static or dynamic.

In pre baked lighting you will only see LOD changes in dynamic objects. As this was causing errors.

In change log from 1.12
Lightmapper can no longer duplicate polygons of first mesh in batching process.

In change log from 1.131
Static entities in level set to "Spawn At Start = No" no longer get lightmapped during LM process

Can you email your x file to me at myke1net at hotmail.com and I will look at it to determine what is wrong.

Just retested this with barrels as per your PM to me.

Barrels by default set in the editor as Dynamic objects (Green highlight). Need to press the Y key to make static (red hightlight).

I placed 4 dynamic barrels are different type into the editor, then placed a new barrel, set it to static in the middle of them.

Ran test game.
Results:
In real time lighting all the barrels go thru there LOD changes as you walk towards them and back away from them.

Performed an F4 light mapping.
Results:
As i walk towards the barrels all of the surrounding dynamic barrels went thru there LOD changes as I walked towards them and back away. The barrel set in the middle of the (static), stayed in its baked form and did not switch between LOD models.

Perhaps LOD is not in the lightmapped version of the object in .fpe/lightmaps/*.dbo , i have no way to check this so ?