http://developer.nvidia.com/object/photoshop_dds_plugins.html
Make sure you get that before starting this part of the tutorial.
After you install those tools opening DDS files is really easy.
Just use those settings.
Once you are done use these settings to save as a DDS file.
DXT3 and generate MIP maps.
Save and then you should be able to use it for your EAW models.