They did convert but the only problem is that the size of the pictures are really small (JPEG version of the texture I get included).
http://img517.imageshack.us/img517/2480/ndarkjedif015mm.jpg)
Does anyone know how to fix this or why I am getting this problem? All help is appreciated :)
Did you extract the texture from the correct texturepack? There are three of them with different resolutions, where _tpc is lowres, _tpb is medium and _tpa is the most high res/large textures. You generally want the ones in the _tpa texturepack.