So I’m having a strange issue lately with certain DDS textures (mostly icons) showing in-game as multi-colored checkerboard noise and was wondering if anyone had seen this and had a quick fix.

When I open the textures in question they appear fine. Resolution is a multiple of 2 (64x64 for the icons), and the path to them from the object in the editor is correct.

Here's what it generally looks like. I think this is the map you get for the Tree Home mod:

http://i858.photobucket.com/albums/ab150/aliendiplomat/errors/test-1.jpg

Are you by chance using small or medium for the Texture size ?? --At certain resolutions the game normally uses the menu80 or menu50 icons that were included with the game -- However a lot of modders fail to make these icons on their mods and when that happens the game will have this type of thing happen when it uses the regular menu icons on those resolutions and medium or small texture setting. To test try changing the texture size to large and see if the problem goes away. To continue using the medium or small texture setting and have them work properly you would need to make some new icons for the menus80 and menus50 folder by resizing the current icon to either 50% or 80% sizeand placing into the upper left corner of a 64x64 texture and save and place in the appropriate folder.