The reason for this is that if you´ve told your drivers to force DXT1 textures to be DXT3 (via a registry/inf tweak) you will get this error. You need to turn this off.
The reason for this functionality existing was because of a hardware issue with the original GeForce (which you obviously don´t have) causing artifacts on hardware decompressed DXT1 textures.
By enabling this functionality on any newer cards you´ll be causing DXT1 textures to use 4 times as much memory for no reason at all. This increased memory usage might even degrade performance.
The way I found to disable this setting without reinstalling drivers (which is a pain for laptops) is as follows:
* Download (
http://www.guru3d.com/index.php?page=rivatuner), install, and run RivaTuner
* In the "Driver Settings" section of the "Main" tab, click the triangle button next to "Customize..."
* Choose the OpenGL button from the pop-out bar
* On the "Rendering quality" tab, uncheck the "Compress to DXT3 instead of DXT1" box.
* Click the [OK] buttons until RivaTuner closes
* Restart your computer and enjoy ET:QW!