Quote: "but you said "I can't find a DDS format that gives a value as small as the png format", "
I was talking about that particular file (which I can see wasn't clear from my wording

). PNG fies can be very big - just depends on the image.
Quote: "I always use DXT1 if I can, as they're the smallest."
Do those particular formats retain full RGB colour information? I don't see how they can for an arbitrary image file.

As far as I'm aware PNG is a lossless form of compression - so in a worst case you get no compression, whereas JPG is lossy often very much so. I assume DDS compressed formats must be lossy too depending on the source image - I'll post again with an example shortly.
Quote: "What are you using to create your DDS files?"
The one I use most often is the MS DX9 SDK utility DTex.exe - or DBPro of course

.
Quote: "The thing with DDS files is the mipmaps are pre-generated."
If you want them to be - DXTex.exe gives you the choice.
Quote: "In the end it doesn't save any memory and takes longer to load."
I'm sure you're right. I think both you and Dark Coder have tried to read more into my post than I intended - I was merely correcting the general statement that DDS files are compressed.
Quote: "Besides, I trust Photoshop more to create high quality mipmaps than DBP, which is undoubtedly rushing the job."
They are quite possibly using the same functions provided in DirectX.

I'd be very surprised if the DBPro ones are custom written for DBPro.
I'll try to put together some examples and post back.