I was wondering how can I save in .dds so I can create icons for new meshes or how can I open them so I can retexture meshes? I was just creating an icon today and I went to save it but I couldn't save it in .dds format.

Need the correct plugin for whatever software you are using to support .dds file format.

http://www.getpaint.net/ can edit and save .dds files without an extra plugin. Try using that, or doing a Google search for ProgramName .dds plugin to see if one is available for the program you're using.