Nevermind
There's a bug in the way a .POL file handles the Alpha channel on a DDS DXT1
without NO_ALPHA, its washed out (even though there's a 1 bit alpha, and it's 'off' on every pixel)
with NO_ALPHA declared in the .POL; it's "the correct colour"
Will open a bug report with Ben with in game XP11 screenshots to prove it. ;)