Simple question, complex answer. This is the relevant extract from the redbook:
Transforming Normals
Normal vectors don't transform in the
same way as vertices, or position
vectors. Mathematically, it's better
to think of normal vectors not as
vectors, but as planes perpendicular
to those vectors. Then, the
transformation rules for normal
vectors are described by the
transformation rules for perpendicular
planes. A homogeneous plane is denoted
by the row vector (a , b, c, d), where
at least one of a, b, c, or d is
nonzero. If q is a nonzero real
number, then (a, b, c, d) and (qa, qb,
qc, qd) represent the same plane. A
point (x, y, z, w)T is on the plane
(a, b, c, d) if ax+by+cz+dw = 0. (If w
= 1, this is the standard description of a euclidean plane.) In order for
(a, b, c, d) to represent a euclidean
plane, at least one of a, b, or c must
be nonzero. If they're all zero, then
(0, 0, 0, d) represents the "plane at
infinity," which contains all the
"points at infinity."
If p is a homogeneous plane and v is a
homogeneous vertex, then the statement
"v lies on plane p" is written
mathematically as pv = 0, where pv is
normal matrix multiplication. If M is
a nonsingular vertex transformation
(that is, a 4 × 4 matrix that has an
inverse M-1), then pv = 0 is
equivalent to pM-1Mv = 0, so Mv lies
on the plane pM-1. Thus, pM-1 is the
image of the plane under the vertex
transformation M.
If you like to think of normal vectors
as vectors instead of as the planes
perpendicular to them, let v and n be
vectors such that v is perpendicular
to n. Then, nTv = 0. Thus, for an
arbitrary nonsingular transformation
M, nTM-1Mv = 0, which means that nTM-1
is the transpose of the transformed
normal vector. Thus, the transformed
normal vector is (M-1)Tn. In other
words, normal vectors are transformed
by the inverse transpose of the
transformation that transforms points.
Whew!
In short, positions and normals do not transform the same way. As explained in the previous text, the normal transformation matrix is (M-1)T. Scaling M to sM would result in (M-1)T/s: the smaller the scale factor, the bigger the transformed normal... Here we go!