.dds How are they read? MIP Maps? Shapes?

[ElitePrince]

I'm currently working with a fixed nix mod I made. This one:


I made it so it turns black at the end which you can see on the 1.dds.
But I don't understand if its really reading top to bottom left to right? diagonally?
How would I make a white trim around the blade as it falls without randomly testing what position does what color and time where.
(and on a side note, what is up with the 2.dds for fixed nix. how does that even work? half the time it just covers up 1.dds and it just shows up as a big square.)

Also what exactly are the MIP maps and how do they work?

Why does creating a brand new folder named flysword cover up what fix nix looks like? Where are the original textures for nix levels 0-9 at?

And where does conquer get the information that tells it what nix looks like? Where does it get the shape I mean. (.c3 files somewhere? which one is this nix .c3?) Anyway to create the .c3 files or edit them?

Is it possible to take the cool pose for warrior (The dragon) and replace the nix effect. So it looks like you made the person do warrior cool? Or even any other effects like the Super Phoenix gem effect for example?

Any answers or explanations to this stuff is appreciated, Thank you.