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I am making my own custom segments so I am looking into the texture naming conventions.

We have letters after our texture name.

D is diffuse
N is normal maps

We also have numbers in our texture name, these are to get rid of multiple tiling effects by substituting at random an alternate texture

Example
Mytexturename_0_D

Numbers after the D are for if we use a normal map, so D2 would be for a texture that will not use a normal map, and D is for a texture that will use a normal map, so this one lacks shadows highlights etc, the D2 has shadows and highlight set into the design of the texture as it will not have a normal maps and so needs extra detail.

Am I correct here so far.

Also am I right that segments only accept tga and dds, I tried using the segment editor and loading jpg and giff and they didnt load in the editor, so I presume they are not supported formats. Is this correct?

Just found out .giff isnt supported, but I was sure .jpg is. Can we use .jpg for segments, Ill try exporting again from another program, perhaps its with my image editor.

No tested again, segment editor will not load in .jpg, Im guessing most users dont use the segmenmt editor so wouldnt know.
I guess I could do it as another image format, then change things in the fpe to the .jpg for the image format.