Gimp .dds Graphics Problem

[Sayounara]

Does anyone know why Gimp is doing this when I try to save a graphic as .dds?

When I proceed, the graphic which shows up in the game isn't circular but square with that black area which was suppose to be included as 'not in the picture' surrounding the civ icon.

Has anyone got Gimp to correctly save a .dds including the alpha layer?

 

[TheGoldenMan]

Try to save dds as DXT3 ARGB 8bit explicit alpha.

 

[The_J]

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