Blocky textures

I have made a sky sphere for my environment. The sphere is mapped with a panoramic sky map of high quality 4096*1024. I update its location to always be that of my camera and turn culling off.

This works but the image quality is degraded, there is a horrible stepping. My color depth is set to 32bit. Is this a texture compression problem? Any suggestions on how to fix this?

Here is the picture:

It could be many things.  Try taking a look at some of the suggestions here:

But a few quick things (some of which are in that thread):

Check to see if S3TC is off, if not, turn it off.

Turn off mip-mapping (in the thread)

Turn on anti-aliasing (in the thread)

Between one or all of those you should notice a pretty big difference

Thankyou Christius,

turning of S3tc did the trick.

For those with a similar problem, you can do it too, send no money now!

final Texture t = TextureManager.loadTexture(skyMapLoc,

magic here