Photo editing software with .dds compatibility/plugin

[R1 GTR]

I'm looking for a photo editing package which will also handle .dds files. I make custom rFactor skins for myself which is why this is needed. I have trialled Adobe CS2 and CS3, but can't justify the price. I just want something i can tweak photos with, maybe more, but also edit and save .dds files. For CS2 and CS3, this was a plugin I downloaded.
My school has Serif Photoplus and can sell me a license extension (educational copy) so this will be the easiest and cheapest option. Does anyone know if there is a .dds plugin out there for photoplus? Also, is it actually any good? I'll have to have a play around with it I think.
Any other ideas are appreciated though.

[_dobbo_]

Fairly certain PaintShop Pro can do it. Think v12 can be picked up for about £60, earlier versions will be cheaper.