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Then go to Custom 3D background (instead of Custom 2D background) and pick the dds ( instead of jpg or similar).
If you want just a static 2d image as a back-drop and not a panorama/cubemap that you can rotate around and have the camera adapt to the light intensity as you do so, then simply pre-apply the desired exposure level and save it as a regular jpeg/PNG, there is currently little need for HDR for static 2d backdrops.
For free I assume you can use a Picturenaut (or maybe gimp if it supports floating point images) with AMD's Cube Gen http://developer.amd.com/tools-and-sdks/archive/legacy-cpu-gpu-tools/cubemapgen/
I'd describe the whole process but I think it might be better to do it as a YouTube video down the road.