[TEXTURE] Alpha Channel Artifacting

[NiitoChan]

Whenever I save textures as DXT1 ARGB 4 BPP | 1 bit alpha in Photoshop CS6, via the NVIDIA Texture Tool plug-in, there is always a certain degree of artifacting within the alpha layer, removing square-shaped portions of it toward the edges of the layer surface. This winds up causing all sorts of issues in-game with strange floating black squares, in addition to strange distortion which becomes all the more obvious the further away the model is from the camera.

 

example: http://i.imgur.com/hUEG1Jd.png

 

Does anyone know what might be causing this? I've my finger on my installation of Photoshop, although maybe I'm also overlooking some setting in the NVIDIA plug-in.

EDIT:
Turns out it was a result of the compression being set to anything other than fastest. Now it no longer artifacts.

Edited August 28, 2016 by NiitoChan