OK...
I found my missing link for modifying existing MSFS textures... you need to go to this site
http://www.simviation.com/fsdutilsdesntute1.htmscroll to the bottom and download the dxtbmp. Once you do that- install it. go to prefs and set the editor to whatever paint program you have. Then you go to file/ & load in any texture. Go to image/send to editor.
that will allow you to alter the texture. save as and place it into the new folder you created
NOTE: in the aircraft folder, copy and paste the original texture folder...rename it texture. # (whatever number comes next in the aircraft folder)
After that you have some more work to do.
go into the aircraft config file, copy [fltsim.2] and paste it below it
change the following to match what you named the airplane model
[fltsim.3] <-what ever number you used for your texture
title=testplane 100 Paint3<-what ever number you used above
sim=testplane100<-name of your aircraft model
texture=3 <-what ever number you used for your texture
kb_checklists=testplane100_check
kb_reference=testplane100_ref
atc_airline=Orbit
ui_manufacturer=testplane100
ui_type=100
ui_variation=Orbit Airlines
description=testing texture replacement
Check out this site-it helpped me
http://www.simviation.com/lair/Repaint2002.htmHappy painting