You actually don't need to convert dds files to view them in PhotoShop. You can download a plug-in from Nvidia that allows PhotoShop to open dds files. See this link:
http://developer.nvidia.com/object/p...s_plugins.html
They also have a utility that allows you to see dds thumbnails in Windows Explorer (very useful!).
http://developer.nvidia.com/object/d...il_viewer.html
It's all free.