If you dont want team color you need to fill the entire alpha channel black, and re-save it. The texture will default to no alpha channel at all. The -cl texture does not need an alpha channel. You can get away with no alpha in the -da texture too since that just controls bloom effects. The normal map (-nm) MUST have an alpha channel.
If you do want team color the areas on the alpha channel that are team color are in white. You can use grayscales to adjust how strong the team color shows on your model.
Remember to save it in DXT5 ARGB 8 bpp l Interpoliated alpha in the dds plugin drop down menu. This includes the normal map as well.
Double check all of your color channels (lower right tab that says channels)
If you are using photoshop with the dds plugins it shouldnt have blurred it. Unless you saved it in the wrong format (DXT3 or one of the others on the drop down list). Or the UV map on the model itself may be messed up.