Are there any experienced modders out there who could tell me where I could find a program to edit .tga files? It would be useful for new items for Morrowind but I plan to use it to make new badges and banners for my units for Dawn of War.

Any decent paint program should be able to do it. It's a common format.

You mean mspaint? I just checked, it doesn't open .tga files. Any other program that comes to mind? Hopefully a free downloadable one?

Paint Shop Pro (downloadable trial-version), Adopbe Photoshop (costy, but good), GIMP (freeware)