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So does that mean I can put a big giant brush around a level...
Basically I get what you're saying about the skybox being a virtual construct and all.
What I'm having trouble with is understanding where it gets rendered, what it's being rendered on and whether that's going to interfere with or be interfered by anything I'm doing outside of my solid brush (my level) and inside a larger air brush.
Is there any benefit in choosing DDS over another file format?
The important detail is that DDS is compressed in a way that can be decoded by video cards natively, in realtime. So instead of something like PNG that gets uncompressed on the CPU and then sent to the GPU as raw pixels, DDS textures are sent to and stored on the video card as-is.