Right now I'm stuck at of which exporting options and such I should use for the .dds file once I've completed the birthsign in Photoshop. Maybe it's not the export that's wrong but the picture itself?
Ok, this is seriously weird. As you can see on this picture and the uppermost picture of this post, somehow the template I use, shows through, even though there shouldn't be any data from the original still left in the picture.
Sure, I could leave it at that and carry on doing something else instead, but then I wouldn't learn anything from the situation and I'll only encounter the problem again later.