Baking is the process of sampling a Max texmap to produce an ordinary 2d texture. All texmaps used in a scene will automatically be baked when a render begins.
Baking support is currently limited to purely 2-dimensional texmaps. Any texmaps that depend on object geometry will not bake correctly.
When baking a texture, the plugin will attempt to automatically detect an appropriate baking resolution based on the resolution of included bitmaps. The texture will be baked at a resolution of (largest width of any sub bitmap) * (largest height of any sub bitmap).
If your texmap is purely procedural and contains no bitmaps, the resolution set in the render setup dialog will be used instead.
The baking resolution can be optionally overridden per-texmap using the Cycles Bitmap Filter texmap.