Hi. Yes, good idea running textures through Imagetool. I just ran a brief test on Tom's batch files, and they do the work with a minimum of fuss. Note, however, that Imagetool doesn't equal Imagetool. The version Tom attaches is
imagetool.exe 188,416 23.01.2006 23:48
which I believe dates back to the 2004 SDK. As has been noted elsewhere, the newer version that comes the FSX SDK's produces better quality compression formats (such as the dxt's). The version I have is
ImageTool.exe 226,880 10.12.2007 21:38
and is from the SP2 FSX SDK. I am attaching it for your own testing - it runs Tom's batch files just fine.
Regarding the batch code itself, for example,
imagetool -batch -dxt3 -nomip -e bmp *.bmp
If I read the help file correctly the -e bmp seems to be redundant as it is the default. I would also drop the word "safe" from the file names because you need the explicit switch "-r" in them to do subdirs as well and provided that's what you want it would also be "safe". Perhaps use "localdir" instead? What arguably is not so safe is the source file search pattern *.bmp because in your source folder you might have different bmp formats, say 32 (often used for props and fuselages), dxt3 (wings) and dxt1 (VC or alphaless stuff)), and levelling them out to one type of bmp might be a tad incautious or inefficient. To be entirely certain of what you have and what you are doing better analyse the source files first (drop them on an Imagetool icon), and then address them individually in the batches. Which naturally complicates the process and makes giving the batch file a telling name rather difficult....
Sorry, just random thoughts. Definitely no nitpicking intended on what is clearly a very useful reply, apologies if this should come across as such.