Texture in game not same as DDS

The texture in game is totally blocky random pixels however the dds looks fine, you can see in the image that its nowhere close...

error.png (886.4 kB)

here is the source dds in case anyone cares

steel.dds (106.6 kB)

after posting this i had an epiphany, use a power of 2 texture or this is what happens to you :B

nothing to see here!

(1-2/2)