The “too many channels to export” DDS Error triggers when you are using a graphics program that uses layers, but there is either no background layer or you haven’t flattened the image prior to saving it as a DDS file. It only happens when you have added an alpha channel to your image.
The fix is relatively simple. Either flatten your image by right-clicking on your layers (in Photoshop) or selecting “merge all” (in Paint Shop Pro) before saving as a DDS format image.
If this doesn’t prevent the problem, then you might possibly have more than one alpha channel attached to your image. If you can see your alpha channel (for example, if you’re using Adobe Photoshop) then it’s easy to see and remove. However, if you’re using a program that doesn’t SHOW you what appears on the alpha, it might be easier to remake your image unless you can find a way of viewing how many alphas are attached. (Most programs allow you to add more than one alpha very easily.)
For more information on working with textures, see our Object Creation Part 2: Object Textures tutorial.