I've yet to experiment with them (Rabid has though, and I will be soon), but apparently a good figure to set for the compile is "- smooth 45".
-smooth 45 is an override for all smoothing groups in the map.
I find it a pain in the ass to manually do it on all surfaces, so I just run -smooth 45 and forget about dealing with it. Pretty much that combined with lower lightmaps on curved surfaces will result in even things like 3-sided curves to look very smooth.
Displacements are only handled through the displacement tab, nothing else. Blending textures is handled through the Paint Alpha function.