Help with converting textures.

Okay so I’m trying to trying to convert a .png to a .vtf for use in a HUD for Garry’s Mod. But i cant seem to convert it and have it maintain its quality, what i do to convert it is import it to VTFEdit and then “save as” (that’s the only why i know how). So i was wandering how would i go about converting it and maintain its quality? Below are two images (blown up and normal size) and the .vmt code:



"UnlitGeneric"
{
	"$basetexture"		"file/path"
	"$ignorez"			"1"
	"$vertexcolor" 		"1"
	"$vertexalpha" 		"1"
	"$nolod" 			"1"
}


Left is the one that comes with Garry’s Mod middle is original and right is the one i tried to convert.

When you open the .png in VTFEdit, there should be a drop down box that says “Normal Format: DXT5” or something similar. Change both the Normal Format and Alpha Format to BGRA8888; it’s larger, but maintains image quality.

Thanks for the help, it looks a bit better but it still has a white/transparent outline. Also i noticed when i exported the one that comes with Garry’s Mod it has a black background when i open it with VTFEdit versus mine which has a white background. Not sure if that helps any but thought it was worth mentioning also here are my VTFEdit settings:

It may have something to do with your VMT options, but I can’t say for sure. I’m completely unfamiliar with UnlitGeneric’s options.

Well i would just like to say that i found a solution after experimenting with file types. I came across .dds and it it worked perfectly and produced and almost exact copy of the original (see below). If anyone is interested here is the plugin for Photoshop 5.0 - CS5.

On the left is the original and the right is the converted .vmf