Image being pixelated?

[Cloudy 17]

Thought this would be one of the best places to ask so I didn't have to hassle @atrX on Steam

Basically I'm wondering why this image is so pixelated? For some reason it uses the DXT1 compression however I saved it as a .dds with DXT5 compression, then in asset manager I tried both DXT5 compression in the settings and uncompressed.

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I have tried both dds and tga formats

[atrX 148]

What are the image dimensions and full asset manager settings? Is the background alpha or is it the gray? What are your export settings apart from the compression?

[Cloudy 17]

Image dimensions are 584 x 456 (Also tried other dimensions, doesn't make a difference).

Please login or register to see this link.  - Also tried all different compression and alphaTest to GE128 instead of Blend.

Background is alpha 

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[atrX 148]

Asset manager settings seem fine. Is the image only pixelated in game or also elsewhere? I tend to export as TGA for 2D materials so what were your export settings for that (I personally use non-compressed 32-bit, which is what has always worked for me)?

[Cloudy 17]

9 hours ago, atrX said:

Asset manager settings seem fine. Is the image only pixelated in game or also elsewhere? I tend to export as TGA for 2D materials so what were your export settings for that (I personally use non-compressed 32-bit, which is what has always worked for me)?

I also use non-compressed 32-bit. The image looks fine everywhere except for in-game.

It seems like it doesn't actually compress it in DXT5, as if CoD4 can only do DXT1 compression regardless of the other compression options. Seems to be the same with every image (even WASD + Spacebar images with rounded corners, once again looks like DXT1 compression).