Even though it is not shown in Xara5's dropdown list of the Import Dialog
It is there John,

It's one of the supported RAW formats.

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I too use the DNG converter for my Canon G10 RAW on order to open them in Lightroom 1.4

Some camera manufactures are adopting the DNG format (Casio, PENTAX, Samsung, Leica, Hasselblad, and others)
I'm actually very interested in the new PENTAX K-7 (also writes to DNG)