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It's based on calculating the adjacent faces of each vertex on the CPU in a dynamic plugin. As long as the typology of the mesh doesn't change this works fine.
This data is then used to apply the previously calculated face-normals.

I'm sure this can be greatly improved, so any comments and suggestions welcome.

Still missing is a weighting of the normals like in this example:
http://www.bytehazard.com/articles/vertnorm.html

Based on GSFX Per vertex normals by lasal.

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