Tools
By far the most useful tool for DF texturing is Interkarma's Daggerfall Imaging, check out his blog for the latest version.

V2.0 download: http://www.dfworkshop.net/?wpdmact=process&did=MS5ob3RsaW5r

Blog: http://www.dfworkshop.net/

Tutorials / Tips
Everything you really need to know is in the General Discussion topic, here's a quick list of things you should keep in mind:

-Quadruple (4x) resolution.
-Realistically colored wood.
-Avoid obvious tiling
-Stored in .tga format with 128 transparency, higher transparency for glow effect

Browse through the forums and check out other member's textures to get some inspiration.

Useful links
Our dropbox account: https://www.dropbox.com/home#/DXLTexPack:::3406423 (PM someone for an invite)

Paint.net, a great free image editor: http://www.getpaint.net/

This is so far really just rudimentary information. Feel free to post your own tutorials and tips in this thread, I'll try to keep this thread updated.