Weird stretched textures

int TextureEngine_Direct3D::CreateTexture(char* description, unsigned char* data, unsigned int width, unsigned int height, ENGINE_TEXTURE_OPTIONS options)
{
	int id = 0;
	// search for a texture with the given properties
	ENGINE_TEXTURE_STRUCT_t* s = FindTexture(description, options.texclass, options.mipmapped, options.quality, options.format);

	// if it doesn't exist yet, create it
	if (!s) {
		// apply quality
		data = ChangeBitmapQuality(data, options.quality, options.format, &width, &height);

		/** initialize parameters */
		LPDIRECTDRAWSURFACE7 tex = NULL;
		DWORD flags = (options.mipmapped ? 0 : D3DX_TEXTURE_NOMIPMAP);
		DWORD w = width;
		DWORD h = height;
		DWORD mipmapcount = (options.mipmapped ? 5 : 0);
		D3DX_SURFACEFORMAT f = (options.format==ENGINE_TEXTURE_FORMAT_RGB ? D3DX_SF_R8G8B8 : D3DX_SF_A8R8G8B8);

		/** set clamping options */
		m_d3ddevice->SetRenderState(D3DRENDERSTATE_WRAP0, options.clamp ? D3DWRAPCOORD_0 | D3DWRAPCOORD_1 : 0);

		/** create texture in Direct3D */
		HRESULT hr;
		if (hr = D3DXCreateTexture(m_d3ddevice, &flags, &w, &h, &f, NULL, &tex, options.mipmapped ? &mipmapcount : NULL)<S_OK) {
			ENGINE_LOG(("createtexture: D3DXCreateTexture failed with error code: %d", hr));
			return 0;
		}

		/** check if we have a valid LPDIRECTDRAWSURFACE7 pointer */
		if (!tex) {
			ENGINE_LOG(("createtexture: failed to create a LPDIRECTDRAWSURFACE7 object"));
			return 0;
		}

		/** check if what we got is at least what we wanted */
		if (options.format==ENGINE_TEXTURE_FORMAT_RGBA && (f==D3DX_SF_R8G8B8 || f==D3DX_SF_X8R8G8B8)) {
			ENGINE_LOG(("createtexture: user wants alpha texture for '%s', but we got RGB only", description));
			return 0;
		}

		/** we only support certain Direct3D formats */
		if (f!=D3DX_SF_R8G8B8 && f!=D3DX_SF_X8R8G8B8 && f!=D3DX_SF_A8R8G8B8) {
			ENGINE_LOG(("createtexture: unsupported Direct3D texture format: 0x%x", f));
			return 0;
		}

		/** resize original data to the size Direct3D requires */
		data = ResizeBitmap(data, options.format, width, height, w, h, false);
		width = w;
		height = h;

		/** lock surface */
		DDSURFACEDESC2 lock;
		tex->Lock(NULL, &lock, DDLOCK_WAIT, NULL);

		/** copy texture data into the surface  */
		// this is the only case we can 'mass copy' all data at once
		if (options.format==ENGINE_TEXTURE_FORMAT_RGB && f==D3DX_SF_R8G8B8) {
			memcpy(lock.lpSurface, data, width*height*3);
		} else {
			// once we've reached this point, we know sure that the *target* pixelsize is always 4 bytes!
			// (the wanted format here will always be XRGB or ARGB)
			// the *source* pixelsize might either be 3 or 4
			
			#define SOURCEPIXEL		(&data[sourcepixelsize*(x + w*y)])
			#define TARGETPIXEL		(&base[targetpixelsize*(x + w*y)])
			
			int sourcepixelsize = (options.format==ENGINE_TEXTURE_FORMAT_RGB ? 3 : 4);
			int targetpixelsize = (f==D3DX_SF_R8G8B8 ? 3 : 4);
			unsigned char* base = (unsigned char*)lock.lpSurface;
			for (unsigned int y=0; y<height; y++) {
				for (unsigned int x=0; x<width; x++) {
					unsigned char* sp = SOURCEPIXEL;
					unsigned char* tp = TARGETPIXEL;
					DWORD pixel;
					switch (options.format) {
						case ENGINE_TEXTURE_FORMAT_RGB: {
							pixel = ((*sp) << 16) + ((*(sp+1))<<8) + (*(sp+2));
							break;
						}

						case ENGINE_TEXTURE_FORMAT_RGBA: {
							pixel = ((*(sp+3))<<24) + ((*sp) << 16) + ((*(sp+1))<<8) + (*(sp+2));
							break;
						}
					}
					memcpy(TARGETPIXEL, &pixel, sizeof(pixel));
				}
			}
		}

		/** unlock surface */
		tex->Unlock(NULL);

		/** let parent class add a new item in the linked list of textures, with the pointer to the surface as id */
		id = TextureEngine::AddTexture(description, width, height, options, (int)tex);

		// add id to valid list
		ASSERT(AddTextureIdentifierToValidList(id), ("createtexture: error adding id %d to list of valid texture ids", id));
	} else {
		// if it exists already, return its id
		s->refcount++;
		id = s->id;
	}
	// free temporary pixel data
	AXEFREE(data);
	return id;
}

void TextureEngine_Direct3D::RemoveTexture(ENGINE_TEXTURE_STRUCT_t *s)
{
	ASSERT(s!=NULL, ("removetexture: s is NULL"));
	ASSERT(RemoveTextureIdentifierFromValidList(s->id), ("removetexture: error removing id %d from list of valid texture ids", s->id));
	LPDIRECTDRAWSURFACE7 tex = (LPDIRECTDRAWSURFACE7) s->id;
	ASSERT(tex!=NULL, ("removetexture: tex is NULL"));

	if (tex) {
		tex->Release();
		tex = NULL;
		s->id = NULL;
	}
	s->id = 0;
}