Instead, I used GIMP. It's free, and you can view, edit and convert .dds files in it.
2 things are needed:
1) Gimp
The download link for the current version is
.2) .dds plugin for Gimp (this is used so Gimp can access .dds files). The current version is
.Instructions:
1) Install Gimp.
2) Unzip the .dds plugin. (dds.exe)
3) Take dds.exe and place it in this folder:
C:\Program Files\GIMP-2.0\lib\gimp\2.0\plug-ins
4)Do not run dds.exe
5) Restart Gimp
You are done. Now you can open, view, edit, save, convert .dds files without needing Photoshop.
A screenshot is attached:






