For those people who are creating world editors and use DDS files. On of the primary problems you'll face is how to display a DDS file in a win form. Form a create little free .NET api that is fast and easy to use.
http://freeimage.sourceforge.netBasically once you add the referance and copy the unmanaged DLL in to the appropriate folder all you have to do is
using FreeImageAPI;
pictureBox1.Image = new FreeImageBitmap(@"texture.dds").ToBitmap();
Make sure you take a look at the licensing options though. You don't have to pay money but it may affect any method you wish to use to distribute your software.