Hey Jagger,

if Photoshop or PSP aren't options for you, you can get a program called DXTBMP from this site http://www.mnwright.btinternet.co.uk/.

It allows you to open DDS files, save them in a different format, and passes them on to different editors (MSPAINT included). One bad thing, you have to import the alpha channel separately (you can edit that too). It's an extra step than the commercial programs, but it works fine. I'm using it in conjuction with GIMP, while a bit buggy, is pretty good alround. Hope this helps.