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... That's why i made an application to do it "nearly" automatically (you must select which textures you want to reduce). The app is actually in beta testing... but will soon be available (for free, for WinXP with Framework 2.0).

That sounds good, but you can do this now with Irfanview with a batch conversion. However, in Irfan all the selected textures have the same operation applied to them (ie. everything has to be reduced by 50%, converted to greyscale, etc). Will your program be able to apply different reductions to each texture?