Well i have a problem.
I've been making new scopes for the pistol and when i made my skin i went to load the texture it said image being injected must be DXT1
how do i make it so the skin is injected successfully???
If you use the inject button rather than the inject texture button, you won't be restricted to directX format images. Likewise, using extract (which only enables after you preview the image) instead of extract texture will allow you to extract it as a more reasonable format.
DDS is just a container format anyways. Like AVI it isn't an encoding itself but a catch-all container, in this case for directX textures like the DXT/n and RGB encodings.