This is a program I found that is free. Once you download it, then download the plugin, and save it to C:\Program Files\Paint.NET\FileTypes and extract it. Then just move the files in the extracted file to C:\Program Files\Paint.NET\FileTypes and it will work.
I used paint.net for my first few skins. Its a great program and in my opinion, the best alternative to photoshop out there. The UI is very smooth and easy to follow. Gimp was too confusing for me
Very old program but thanks for the dds thing. Oh and Paint.NET doesn't work in Windows 2000, so I will stick with Photoshop and DXTBMP.
I play on XLink Kai as FJGamer. (FJ is my Halo 2 profile.) I have a mic, and I love to play 8 on 8 mics versus no mics. I also love to mod Halo 2. For some reason Halo 1 won't work on system link, though.