<blockquote class='quote\\_blockquote'><dl><dt>Earthworm Dolan</dt><dd>Jul 10 2013, 02:06:32 AM</dd></dl><div>DDS is a stupid format. 3 textures from GTA IV are DDS format and they don't work. So I dunno.[/quote]DDS is far from a "stupid format". Most video game textures are compressed down into DXT1/DXT3 dds format, because they're exceptional in compression sizes for space at a cost of not losing much detail.
Blue usually indicates you've toggled the settings for Normal mapping, I would suggest hitting the reset button to clear any previous states.