From the BoB2 Skinner's Pack docs:
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The DDS format contains several "subformat". For us of interest are those that compress the picture.
The are called DXT and numbered. For BoB(2) use DXT1 for a texture without alpha and DXT5 for one with.
The compression is lossy. So, there can be artefacts, but the good news is the texture stays compressed even in VRAM.
When saving use compression DXT1 or, if the image has alpha (transparency), use DXT5. Keep in mind this is a lossy compression,
so use these formats for the final save. To save temporary files that you will later open in GIMP again for further tweaking, use an uncompressed format.
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Like I said above, DXT3 (not used in BoB2) contains alpha as well IIRC.