I don't get the warning in PS6, just a warning that "some data will be lost". I do get the "copy" added to the filename.
Since I always save the PSD before copying or "saving as", I will try flattening the file next time as I have been in a hurry and forgot to delete the "copy" before. Then wondered why my changes don't show up in DXTBmp.
I will see your "fluff" and raise you an atta-boy.
peace,
the Bean