Let's check ..

It's always possible i screwed something up
Using yours:
float microTexScale[] = { 1, 2, 4, 8 };
( 128.0 / pow(2.0, microTextureScale) );
128 / (2^1) = 64 = 2x scaling
128 / (2^2) = 32 = 4x scaling
128 / (2^4) = 8 = 16x scaling
128 / (2^8) = 0.5 = 256x scaling
Using svn version
128 / (2) = 64 = 2x scaling
128 / (4) = 32 = 4x scaling
128 / (8) = 16 = 8x scaling
128 / (16) =8 = 16x scaling
I suppose the question is. For MicroTextureMinLOD() using the value 2 is the correct scaling 8x or 16x ? What's the visual difference in daytona ?
I assumed also that
#define MAX_MICROTEXTURE_LOD (4)
referred simply to the number of LODs there were. Not a direct clamp on the value.