Clarification regarding DDS files -- FS One supports DXT1 (no alpha), DXT3 (explicit alpha), and DXT5 (interpolated alpha) DDS formats with or without mipmaps. Which format should be used depends on what is being done. For example, with panos, you should use DXT1 format without mipmaps. Your panos can also use uncompressed TGA format, if you prefer.

Hope this helps.