(07-02-2011, 12:39 PM)nkmol Wrote: yes it does support DDS files 
the original textures are .dds 
i actually have a question
what is the differents between just a simple .PNG file and .DDS file?
PNG good: High quality images. The compression is lossless.
PNG bad: Takes lots of system RAM and CPU time to process.
JPG good: Takes less storage space than PNG. Performance may be a bit better than PNG. I'm not sure I can tell a difference.
JPG bad: Still chews up a lot of system RAM and CPU time. Lossy compression, so the image is degraded... but can still be quite good image quality, if you save them at a high quality compression ratio. (You knew that anyway) All in all... if I must choose between JPG and PNG, I will nearly always choose PNG.
DDS good: Processed directly by the video card, thus relieving a lot of the strain on the system RAM and CPU.
DDS bad: Lossy compression (there is u8888 compression, etc. which is lossless, but file sizes become prohibitive). Files in dxt1c format (the compression which yields the smallest file size) still take a lot of disk space.