Stress - .... don't worry about textures.ll , it's actually QUITE usefull, and 32mb is not a bad limit at all. With certain options, liflist can actually make textures that are larger than 256x256!!

I've tried it out, after a suggestion some time ago by Pesmontis. I converted some HW2 ships back into HW, original textures and all, and they work. ie - the Hgn_destroyer has a 512x512 texture i think, it works great in HW.
When you actually have a total conversion MOD made and ready, it's quite easy to erase old entries from the textures.ll , and remake a new one using liflist that contains all your new textures. This then enables you to do texture sharing as well, which REALLY saves on memory useage and can stretch that 32mb even farther.