[yochoylamuete]

Apparently you're doing everything right. Just try to save the textures in jpg format (I do so with all my skins and they don't look so bad). If they work as jpg, then try to convert them to tga if that's what you want, though the dds file shouldn't be needed if you uncheck the compressed textures options. I must say I had that very same problem with my first skin pack, which I solved much like you, by downloading a different pack from the internet and then editting it.

Good luck