I've searched the forums and google and haven't found any direct answers of how to do this. Basically, i want to be able to view my .dds texture directly on the 3D model as I edit. That way I don't have to constantly load it up in game to see if the texture looks right. I've seen it done before but no instructions how. This is as far as I've gotten:

Basically, I went into edit mode. Unwrapped the face model (U-key), and then opened a .bmp image of my face texture. However you can see the mesh is turned sideways and not mapped at all to my image. On top of it I have no idea how to even get the texture to show up on the model. Any help would be greatly appreciated!
Edit: Similar to how this guy has it in the video:
http://www.youtube.com/watch?v=vhdPLtYx_gwEdit 2: If I skip the step to "unwrap" the image and go directly to the UV editor I get this big ball of junk. But when I open the image it seems to map automatically. If I can get this big ball of junk to go away and map to the image properly (like in the video) I'll be all set...