I was making a placeholder texture that was 2 x 2 pixels and got this problem:

"### ERROR extract: failed to compress color plate"

I gave it to my friend to have him compile it for me and ran into the same problem. He even made his own 2 x 2 sprite and it failed as well.

Then i just decided to change it to 16 x 16 and it worked! But i'm confused about this problem still. It can't be a problem with power of two dimensions since 2 is a power of 2 (2^1 = 2), so why can't it save as 2 x 2?

You can't use 2x2 because when compressing with color-key transparency it takes a 4x4 block of pixels to compress. I just use 4x4 and it works perfectly.

alright then. Thanks.