How do I convert a .dds file to greyscale?

As far as i know .dds format can not be grey scale. It needs to be saved as RGB color.

You can use the the Hue/Saturation tool in PS, taking the color saturation all the way down. This will give you a greyscale look, while the picture is still RGB.

BTW. there is a plugin for PS from nvidia (somewhere on they website) to read/save dds directly, saving the conversion step via DXTBMP.
 
Download GIMP. Is free.

Open your jpg in GIMP, then follow the same suggestion offered by Refar: "You can use the the Hue/Saturation tool... taking the color saturation all the way down."

Save + convert to dds.
 
I dont know this Elements thingie... If not having a saturation tool, you can convert to grayscale, which will discard the color information, then convert back to RGB, export and save.
 
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