blitz's mipmapping - yeuck

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AntMan - Banned in the line of duty.
 #1
Well, Dxt = the actual compression method. DDS just 'encapsulates' the a complete texture usually, mip maps etc.

And yes, vivid CAN compress format texture on the fly into a compressed texture.

As for loading of .dds files, not currently. I will add it, it's just a bit messy as you have to use the directX api etc to actually load the file.