When I do the dds files I start by opening one up in paint.net (with dds filter) And save as .png. Then I edit the .png in Paint Shop Pro and use the .png export filter to keep the transparency. then import onto the old .dds and save as dxt3.
Well... It would be going well if I could find the rest of the decals.
And a nice big image of the flag.
I managed to find the 'Maguiars' logo, but that will take a while to recolour.
I just need the 'WantMyRide.com', 'Andersons', 'NUTS', 'Transcar' and a few others which I can't make out decals.