DDD: Repository and Data Access Object (DAO) and entity creation

Hi,

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I'm fairly new to DDD but like the idea and is trying it out in a web solution. Goal: Good domain model with possibility to use xml files as well as sql as data source (linq/nhibernate etc). But I cannot find any good pros/cons or best practice with (to begin with) two thing:

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(See my basic layer-layout after my questions).

1. Data access layer / Repository:My layer flow basically: UI->Applayer->DomainLayer->RepositoryLayer->DaoLayer->[data source](and infrastructure as the common layer)

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I think I want to use repository AND dao layers with factories - pros/cons/avoid it/good/bad etc?.

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It ...