When working with 3D models, sometimes we can use different textures files (like .TGA or .PNG).
There is a very simple program to transform this files to .DDS which is the common file type for Torchlight.
This tool is call: DDS Converter (version 1.4)
It's very simple to use.
For normal images use DTX1, if you are using transparency you can use DTX3 or DTX5 (I think TL use DTX3 but can recognize DTX5 as well).
Since this application works with folders we can transform as many files are in one folder, easy and fast.
Hope you like this tool.
Thanks for reading.