Its actually becoming to look very good. On the compression thing you could always leave it uncompressed but remember that each DTX file will be aprox 5Mb or you could use 4x compression. Be carefull when you are compressing, dedit is buggy with files this large and sometimes will fail to create the alpha channel, this leads to the texture being invisible ingame. You can make sure that the alpha channel was created by looking on the dedit texture viewer, on the preview window there must be your texture and a white part next to it (drag the window to the left if you cant see this), if there is a black space next to your texture it means the alpha wasnt created.
