I wish somebody would come out with a program that incorported a program like DXTBmp. That way you could have everything under one roof.
Regards,
Stratobat
At the risk of sounding like a commercial, Abacus' FS Repaint allows you to open a create a repaint variant (modifies the aircraft.cfg file for you) copying the "parent" textures to the new variant folder (unless, of course, you want to change the existing textures) and edit (paint) the new textures, inlcuding the alpha channels, etc. without having to use one program for image conversion, one program for editing, another conversion to/from alpha channel, etc.
In addition, by using the default editor, you get to see your changes - as you make them.
Granted, there many who prefer to do the conversion and use "high end" graphics programs, but FS Repaint allows you to export the texture to your graphics program and bring it back so you can see the changes to your iamges on the model, without starting up or running FS2004 in the background.