How is the Internal render engine different from Cycles when it comes to Normal map? How are they different?




When I see these examples, I can see that in Blender Internal the map is much cleaner. It looks like another model with X Ray enabled. But, in cycles the normal map is a little messy. How is the map different from Internal and cycles and how can I get the normal map results in cycles as in Internal?

Edit: There is the file - 
http://www.pasteall.org/blend/29913

Note - The scene in blender internal is on the first layer and the scene for cycles in on another layer.

Here is the texture - 


Unwrap the model with Smart UV Project so that it fits the normal map texture or you can bake one of your own.

Edit: Node set-up - 


Edit: I tried user2926289's upproach but for some reason its still not as good as in blender internal. Any other ideas?

Blender Internal - 

user2926289's approach in cycles -
There is an error in your node setup:
Yours:


Correct:


Note that the normal value gets plugged into the normal option on the shader node, not into the displacement.