Elite Force 2
Here's a handy program to allow you to easily convert to DDS (and other formats) easily. The program supports DDS, TGA, JPG, BMP, PNG and PSD image formats (you can import and export to any of those
formats). This newer version is indeed a huge step-up from the previous v1.2. It has a lot more features and is much more easier to use. It is also a lot faster than the earlier version. The only thing that slightly bugged me a bit is that after converting a file, you either had to Close the program or Restart, which is a little weird but still not a huge hindrance to using the program (I'm really just a nitpicking here, ignore me :p). You can even use this program for other games (or programs) that need DDS files (like recently released Doom3)! Check the readme out for a little more insight into some options that come with the program. I'd say this is a definite download for anyone who needs to work with DDS files.