Firstly, all DDS files need "import into VFS" set trueSo I downloaded your file, but I am still having trouble. A possible cause is when I try to save it as .dds, it says that it can't save a layer mask. I do, however, export the layer mask.
I still, unfortunately, still get the, "Can't load texture <filename>" error.
Any help is appreciated
Secondly, when it says it can't include the mask, it should apply the mask as part of the export. That's just normal behaviour when going from a format that supports layers to one that doesn't - masks are applied and layers collapsed. Ends up with it looking however it looks in the view before the save (if you've got a normal view at the time).