I save this files as .png and convert it to .dds. This works.
You can download this Converter from that Site:
So we can usee .dds in FshX to save it to the FACE? I did not know it took different formats. So I can do all my work as a PNG and convert it DDS to place into the FACE fsh and it will work? Cool. I will from now on do this in my Photoshop C6. Thanks to both you for the heads up.