Thanks a bunch for shedding some light on the subject
I tried resetting back to the default save settings and changed it to DXT5 but it made it so where the transparency should have been (alpha) it was just black or white or whatever colour background i was using.
"- DXT5 (with MIP maps) is better than DXT1 for gear textures (even if the last wedding stuff came in DXT1 format)"
- I see DXT5 in interpolated alpha and DTX5_NM. I assume i don't use NM because it makes it a weird colour.
- color encoding may be the reason of your pb. as seen below the model does contain B&W,
-B&W as in black and white?- these shall be cutted-off with low and/or high values (color or alpha limits).
the MLT format does contain a cut-off value, not the ITM format; so these limits are certainly coded "somewhere" in the texture file (at some magic coords).
so when you do such changes make them on a HLS (hue, lightness, saturation) view of the text [edit] picture[/edit]. and change the hue only.
so I can only change the hue when editing pictures? I'm sorry for misunderstanding.
I know this is a big thing to ask but do you think you could save the DDS profile you use for saving and give it to me? in the bottom right it says "save profile"
It would mean a lot to me

If it's too much then it's okay, i just really want this to work, did you have to mess around with the settings?
sorry if I'm being a bother :s