Help, please...

[acecia]

Ok I would like to use another program to create images for this game.. and then open them with PS and convert to DDS, the program I use doesnt support DDS.. but theres things i can do with it that i cant do with PS...

First of all can I save them in jpg form? and then open in PS and change the background to transparent and then add an alpha channel so that it will work in EQ2?

If so how? thanks in advance for the help..