Using Templates
Templates make it easier for you to select parts of a design in order to change them. For Photoshop they are .psd files, which support layers (unlike .dds). We made a simple one on the way to adding the spinnaker logo on the 'Making Boat Skins' page. However 
once you want to see it in VSK, you need to save the file in .dds format because that is the format that VSK needs in the Zip file. In this article, the pictures are of the template that I used to make 'White Rabbit V'. You can find templates for most of the boat models in various websites - good places to look are Virtual Winds and VSK-AUS. You will need to register with these sites to be able to download files.
A template has several layers - you can add more of your own and delete layers which you dont need (or just make them invisible). Individual parts of the design are put in different layers. For example, the mast, boom, deck and any writing on the hull are in their own layers, separate from the layers containing the hull itself. So you can easily alter the detail & colour of these bits, without the risk of affecting the rest of the design. Also because you can make the layers visible or not, you can see how things look with or without a particular effect easily. Once you are happy with the design, the layers are flattened into one single layer and the file is saved in .dds format, for zipping to VSK.
a. Download a Template. First set up folders on your PC to organise the downloads & skin files. Go to 'My Documents' and make a new folder called 'My Downloaded Skins'. Inside this,make a new folder called 'AccTemplate'. Now go back to 'My Documents' and make a new folder called 'My Skins' and inside that, make a new folder called 'MyRabbit', or whatever you are going to call your boat.
Now you can download a template. There is one avaiable here or you can download one from VSK Australia and collect the template for the Acc boat. (Note it is about 20MB and you will need to register with the site). Save it in your 'My Downloaded Skins' folder. Then unzip the file to the subfolder that you made called 'Acc Template'.
b. The Hull. Start Photoshop, browse to ‘Acc Template’ and open hull.psd. You will see in the layers window that hull.psd has a background layer at the bottom and that higher layers are used to vary the appearance of the end product. The colour of the hull can be easily changed. One method is to select the hull shape using the magic wand (initially set the tolerance to 30 but vary this if the outline is not correct) and fill with colour using the paint bucket with a new colour. To add a name or design to the hull, create a new layer, so that it’s easy to remove or alter later. This happens automatically if you use the type tool for a name but for a design, you need to create a new layer using the small icon at the bottom of the layers window. Once you’re happy, save as hull.psd file in your hull skin folder (MyRabbit in this example). Now use the top menu [Layers] / [Flatten Image] and save it as hull.dds, selecting DTX5 format, generate mipmaps and 2D Texture, when the dialogue box appears. Close the file.
c. The TeamMate is treated in the same way as the hull. The final file is called TeamMate.dds
d. The Sails: Sails1. Open sails1.psd. (say ‘no’ to any offer to update the text files). New designs and lettering are put on separate layers in the same way as the hull. If you want to see through your sails, you need to create transparency. One method is by use of the alpha channel, described below.
Transparency. At the moment you are working by default on what is called the RGB Channel. The transparency of the sails is controlled by the alpha channel which is accessed by a tab on the layers window. Select it & make it visible. You will see that the background is dark grey & the sail fibres & details are light grey. You can only use shades of grey in the alpha channel and the idea is that the darker the tone, the more transparent the object. When you have finished your new designs and lettering in the RGB channel of the template, use magic wand to select the shape (one layer at a time), then go to the Alpha channel and paint the shape in a very light shade, using the brush or paint bucket tool. You can see that I have done this with the sail seams and cup logo in the picture on the left. You won't really know how it looks in VSK till you have created the skin and seen it in the game, so be prepared to come back & adjust the grey tones later.
Once you're happy, save the file as sails1.psd file in your hull skin folder, MyRabbit. Now use the top menu [Layers] / [Flatten Image], and save it as a file called sails1.dds, selecting DTX5 format, generate mipmaps and 2D Texture, when the dialogue box appears. Close the file.
The Sails: Sails2. Open sails2.psd and treat exactly in the same way as Sails1.psd, saving as Sails2.psd and Sails2.dds.
e. The Spinnaker. Open spi2.psd and treat exactly in the same way as Sails1.psd, saving as Spi2.psd and Spi2.dds.
f. The Icon. Open icon.psd. Highlight the top layer in the layers window and click over the Type Tool. Place the mouse arrow at the end of the White Rabbit name and it should turn into an Type Cursor. Use backspace to delete the letters and type My Rabbit in its place. Save as icon.psd . Now use the top menu [Layers] / [Flatten Image], and then save as a file called icon.dds, selecting DTX5 format, generate mipmaps and 2D Texture, when the dialogue box appears. Close the file.
g. Create the Zip File. Once you are happy with the design & want to see it in the game, use Winzip to create a new Zip file with the name of your new boat, (MyRabbit.zip in this example) and 
put it in C:\Program Files\32nd America's Cup\Game Data\Skins\Boats\Acc. Include all the six .dds files that you have just made. (Hull.dds, TeamMate.dds, Sails1.dds, Sails2.dds, Spi2.dds and icon.dds). Dont change the .dds files' names.
h. Check the Effect. To see the result, start VSK5 and go to Settings to select your boat and admire your efforts in the game! Each time you update your Zip file with any change to a .dds file, you may need to reselect the boat in Settings, depending on where you were in VSK when you did it. You will find that it speeds up making changes if you quit the race but leave VSK running and leave Winzip running too - you can then use the 'back' button on Winzip to rezip the file you've changed & restart the race to see how things look, without having to relaunch VSK or Winzip.