Mipmapping has worked for me at many resolutions on many formats, however try to remember guys that DBP only has the ability to use Linear MipMapping, this can quite oftenly cause some confusion to if it is working or not ... because the difference is subtle as the entire scene blends seemlessly but you can certainly tell the difference when it is off once you have had it on.
If anyone tells you they can tell to the contratry they're quite full of it, because Linear & Anisotrophic Mipmapping is something you don't notice is there until its gone ... it's a little like subtle focus depth - it can add alot of atmosphere without actually being noticeable.
that aside DDS don't automatically contain MipMap levels, just like they don't automatically contain Alpha Maps ... you have to export them with these - currently alot of plugins for Photoshop, Max, Maya, Softimage which will export DDS and with mipmap levels.
if you're using DXT5 or DXT8 then its a good bet that it has been premipmaped
Within the Epic battle of the fates the Shadow and the Angel will meet. With it will harbinger the very fight of good vs evil!