Good to hear you got your mojo workin'To really simplify matters go into DXTbmp Pref Menu/Select Editor then when you want o convert and work on a texture file simply click Image/Send to Editor.
Repaint using Targa/alpha is best (other than directly using the 32bit Extended)
reference cited:
Martin Wright states:
"The normal procedure recommended with my FS tools is to load in the original texture, save out as 32 bit Targa or 32 bit Extended and then do all your editing using this 32 bit version. When you want to try the texture in FS load in the 32 bit version and save out