The original post was to describe the whole process that can be achieved using nothing but Paint and DXTBmp. I realised that there were other tools out there that could achieve this but the point was to explain the manual conversion process. Once you understand what the image has to go through then it is easier to use other tools correctly.

My personal favourite to use is Don Grovestine's TextureMaker as it allows you to do a batch of paints. Once you set up the parms correctly you can convert several dozen in one go.

I am sure that members will find the tool you mention useful as well.