I never found anyone that knew the process so I finally through trial and error figured out a way. It's a few more steps than I like but it's easy to do and most importantly it works. If some one has a better way please make a post. Love to be corrected on this one but hey at least I can get useable ones this way.
Basically you have to create seperate models for the Morphs to turn them into Blend Shapes. What I do is import the polygonal model then one by one run each Morph up to a 100%. While each is at a 100% I duplicate it and move it to the side then rename it for the Morph then reset the original and start the process again for each Morph. Say if you are doing a character with four expression morphs you'll wind up with five models, the original and four models with each morph. Remember to reset the original before the next step. I then select all the models and convert them to Sub Division models. Before I go any further I delete all the morphs from each model. They are redundant at this point and can cause problems. A hassle but I'd recommend it. Now you have a standard Maya Blendshape set up. Just select all the Blend Shapes then last select the original. Go to the Deform Menu and select Create Blend Shape. You can name it and hit create. You now have a functional Maya Blend Shape set stored. I'd group them together before you do anything else. There's several ways of doing that, I'm fond of the Hypergraph drag and drop myself. Just open up the Blend Shape Editor under Windows/Animation Editors/Blend Shape.... and enjoy.
Big relief sorting that out. Seems straight forward now but I was convinced there had to be a way of using the Morphs after the model had been converted to a Sub Division model. The Morphs still seem to be there but I can't figure out anyway to access them. This way is fairly straight forward and works. It seems like a hassle but I can convert a head with four Morphs in five minutes so it's really not that complicated. The biggest hassle is deleting the redundant Morphs from each head. There may be a way to MEL that but I'm not past the tweaking numbers level in MEL scipting.
Hope this helps some one else.
[Originally posted by Belseth on Luxology's Modo forum]