This is a topic that I cover in my second DVD on writing HLSL shaders. I go over both using HDRShop and CubeMapGen.
Here are a full more detailed about the CubeMapGen method:
In Joel’s image above, there’s a blue drop-down box called Filter Type that is currently set to Cosine. Cosine is the setting that I usually use. Once you’ve got that set, you’ll then adjust the slider that’s called “Base Filter Angle.” A value of zero on that is a sharp, perfect mirror reflection. A value of 180 means that you’re averaging all of the pixels in a 180 degree hemisphere - so each pixel in your cube map will represent all of the light coming into the surface from every direction. I like to call cube maps blurred this much “Diffusely Convolved Cube Maps.” These can be used for image based lighting as the ambient term. You can get some really nice lighting results with them if you sample them with the world space normals of your model.
Once you’re got your filter type and your base filter angle set, hit the Filter Cubemap button at the bottom of the blue area and after of bit of waiting, you’ll get a nice blurry cube map with no seams.