Hi Chazzer

Sorry for the delay in getting back to this post.  Not being able to see the forum eveyday makes me miss things.

I always use DXT3.  It give the best alround preformance over texture quality.  The best thing to do is convert your BMP images to DXT3 using "Image tool" which comes as part of the MS FS9 SDK.

Here is a direct link to the package.

http://download.microsoft.com/download/4/f/f/4ffb2a54-cb13-4c3d-996d-7e7bd86b884c/terrain_sdk_setup.exe

Download it and and give it a try.

Hope this helps

Dax