Ok crisis averted.  Not only did the vendor agree to a refund, but then in the third email they showed me exactly what I needed to do.   Clear as a bell.  I tried out the textures and they worked great.  I just need a little guidance I guess.  And no you can't convert the .DSF is what I learned LOL.   

I had the "mapped" files so all I had to do was texture the dragon white and then add the files in the material room and save as a material preset myself.  I wasn't saving the critter as white to start with which is why it looked ucky I guess.  

I successfully got all the parts and pieces of the green dragon added all the way down to tongue and teeth.  

I'm so happy and I've learned something today too.  I might even be able to make my own MAT files b/c a lot of the "huhs" that I had were answered today when I had to do this myself.  Now I just need to put all the files where they need to go and do it all over again for each color.  UGH.  :)  

Makes you appreciate MAT files LOL.  

See I told you all I had no clue what I was doing.  LOL.  It's a wonder I can make art in the program sometimes.  This is why I'm the queen of ADD.  

I'm just happy that it worked.  Now if I cold only get the free morphs to behave on the dragon he'd have a cool new head :)  

Thank you all for your help.