Urr, it's not a question of '8bit' or '32bit'...
It works somethinge like this....
32bit textures were converted to DDS with DXT5 compression.
24bit textures were converted to DDS with DXT1c coompression.
Anything other than those two were converted to DDS with DXT3 compression (default), although we can specify for those as well, probably DXT1c is best. There's lots of things we can specify and we're probably not using the best settings right now, but we can improve on that fairly fast.
This is a four-bit compressed color format that allows for opaque, and one-bit alpha textures; that is, textures with no transparency at all, and textures with a single transparent color (masking). The most compression will be put on textures.
DXT1c is colour only (no alpha),
DXT1a has that 1bit alpha.
DXT3 adds support for a four-bit explicit alpha channel, on top of DXT1's color compression. Four-bit explicit alpha allows for sixteen distinct alpha values, making it good for textures with sharply contrasting translucent/opaque areas.
DXT5 ssupports a four-bit interpolated alpha channel. Three bits are used to determine explicit alpha values, and two eight-bit values are used to interpolate gradually between them. This makes the format especially suited for soft gradients and other textures where the alpha areas vary less wildly. The least compressed option.
And no, I didn't have load all maps on. 350mb is normal for loading one map on windows. If I put on load all maps, the ram usage would be closer to 600mb.