I assume this is the right place to put this - I’ve just coded S3TC/DXT support, including reading native DXT1,3,5 images from DDS files (using a DDS loader, integrated into the TextureManager texture loading code) and compressing on the fly.
Anyway, if anyone’s interested, the source and class files are at:
http://homepage.ntlworld.com/chaosdeathfish/s3tc.jar
The code was written against the latest CVS version, I’ve not had time to check against the latest release.
Anyway, I’ve modified LWJGLTextureState and Image, which may have repercussions I haven’t thought of - if anyone who knows the internals better has a chance to go over the code I’d be grateful.
Hey, I’ll be looking into your jar today, running tests and hopefully adding in the support. Thanks for the submission!
One question… Is any of the DDS specific code under copyright?
Great. I’ve done some testing and all looks well. I especially appreciate how slim the code changes to the existing code were… very surgical. 
It will be in cvs shortly and I’ll be posting a bit more info on another thread to ensure people read about this.
Good work.