I can explain a little bit about what I do for highlighting.
I have two sets of images I posted in the
gallery section here. They are good examples of my process for applying highlights and reflectivity to an avatar texture. They show several types of highlights in a single texture. It is just one example amongst an infinite number of surface types that will reflect light. Clothing will not be any different in principle, but will probably be much simpler to produce since reflected light from clothing is likely to be more diffuse than a highly polished surface like carbon fiber resin. The more diffuse the reflected light is the less precise one needs to be in defining the light source(s) Reflected light is what will register as a highlight when light rays bounce off the texture’s surface and converge on the camera’s, or observers’s vantage point. SL can not accurately produce this type of effect dynamically upon the surface of the avatar for any given texture type, so this is why adding the illusion of this effect (from a carefully chosen vantage point) makes some textures look more realistic than their flatter counterparts.
Don’t forget that wherever there are highlights there will be shadows where less light is reflected back to the camera/observer. Wrinkles in clothing are a great example of this. There are already several tutorials floating around on creating wrinkles, all dealing with burn and dodge effects.
The most obvious highlight in my example below is the bright spot highlights from three primary light sources. There is also a secondary reflective highlight and a tertiary color highlight (which is baked into a single reflective environmental layer) to differentiate the light and colors coming from above and below. In the carbon fiber skin example I used a snapshot of a landscape with bright blue sky and brownish green grassy tones on the ground to add color highlights to the skin surface. This looks most natural for the (typical SL landscape) background that the avatar figure is standing in
here. In the figures below I have 3 primary images separated out of the composite image. Two are complete skin layers (Figures 1&2), and one is meant to be used as an alpha channel (Figure 3). The reflected environment in Figure 1 was dodged into the texture in figure 2 using a combination of linear and color dodge (layer modes) in Photoshop. This brought out the color and the highlights from figure 1 while maintaining the underlying texture information in Figure 2. The primary highlights were dealt with by adding a third (levels) adjustment layer using the image seen in Figure 3. Each of the upper layers contributed to the effect of the ones below it, so the sequence for this skin’s highlighting effects was:
Layer 1 - The carbon fiber skin texture at normal layer mode and 100% opacity
Layer 2 - A levels adjustement layer applied using the spot highlight alpha channel at 15% opacity
Layer 3 - The environmental reflection skin texture linear dodged at 25% opacity
Layer 4 - The environmental reflection skin texture duplicated and color dodged at 75% opacity
The end result looks like the composite seen in Figure 4 and the final image posted
here.