For some reason the “Flatten Mapping...” in “Unwrap UVW” modifier, under “Mapping” pull down is disabled when I try to get the best mapping of the model and save its layout for texturing.

Any idea why?

Also, is there a function similar to “Add Seam” in 3ds max to cut up the model for better mapping?

Face must be highlighted to get the Flatten mapping option working.
Also you can use the settings into the Flatten Mapping menu to define the size of the clusters or using the Brake and Stitch tools to modify them.

The Pelt mode gives you the opportunity to define Seams manually, give it a try.

ivan

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Thanks!