The reflection distortion looks like Poser's smoothing. Whenever I export something from LW7.5 to use in P5 I first select any groups of polygons that make up a flat surface and have edges that must stay sharp, and then I cut them and immediatley paste them back in. This splits the virtexes along the edges of what was selected so Poser's smoothing won't go past that edge. I also limit my models to quads and triangles. It looks like the surface with the problem is perhaps a multi-sided polygon beyond 4 sides. I don't know if it has any effect, but you might make a copy of the model and do some experiments on that area to see if either splitting the virtexes at the edges, or reducing the number of edges on the polygon.