Gimp can open .dds files, and at the moment that's the only program I have for 2D stuff.
I'm not exactly sure what you mean by
how I'm supposed to combine the individual mesh pieces into one UV map/texture sheet.. You can join Islands or polygon mesh's together using the "heal" tools in the "texture/UV editor"(Alt+7) in SoftImage.
To elaborate on this, I was referring to the video tutorials (link in OP), where if you look closely the guy has his Porsche door in a seperate polymesh from the rest of the car, and thus it has its own UV map. Not splitting up the model resulted in me getting a "too many polygons" or so error when applying a weight map to the high-res version, and even with 100% opacity, painting the entire model with said weight map resulted in only some square specks appearing, with the rest of the surface unaffected. Splitting up the model solved this, so I'm fairly sure this was the problem.
However, each of my model parts now has its own Texture Projection and UV map, and I don't know how to combine the individual Projections/UV maps into one large projection full of subprojections (which was my approach prior to realising the weight maps don't support that many polys)
The most important question for now is whether I can use textures painted in XSI via layers/weightmaps for sins models (i.e. export them as 2D images and somehow splice them into the layers needed for sins, then save as .dds in Gimp), because if I can't then I needn't bother with getting that to work.
Just how exactly do other people (even the sins devs) produce their textures? I simply can't believe that they print out a UV stamp and paint the entire texture over that, which is what this tutorial seems to suggest.