Originally Posted by Cairenn
Don't compress it. That's probably your problem.
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The problem was there both with and without compression using Photoshop, but nonexistent in The Gimp. The Gimp simply handles this better, or at least in a more automatic way for newbies like me.
As far as I know the WoW client has supported RLE compression properly since 2.1. It won't make any real difference though, not on these tiny texture files.