You should use .dds textures because
* they are loaded very fast compared to other formats
* they consume much less video memory than uncompressed textures
* you can tell the amount of video memory the texture will eat up by the file size.

hmm sounds great.
I have photoshop 7 i´ll search for a plugin to work with .dds

Another question does .DDS has any imcompatibiity with older systems? or as long as the DirectX is updated on those systems, it works fine?

thanks

Look under Content Authoring - Photoshop Plugins at this Nvidia site. The plugins can also be used in PaintShop Pro.

cheers,

thanks