Opps... On Second Thought.
I was tired when I wrote #5, so forgive me if it went astray. ;-p
I haven't used wally in wine-staging 2.0rc3 for Quake2 stuff lately and must
of been thinking about another program because YES
the batch converter works fine. I just converted a couple hundred Q2 Weapons Factory wal files back and forth between image formats and the process was quick and the files were fine.
Most older programs work fine in WINE. Wally and Photoshop 7 being of those along with the Quake2 WAL plugin for it. For the WTF issues running the occassional windows apps I have a old stripped down version of windows XP and freely available and legal virtual image of Windows 7