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I always convert my Raw files to DNG upon Import to LR4 which has the capability of storing all its Exif metadata within the DNG file. My question is : why is it that LRT finds it necessary to attach an additional xmp sidecar file to the existing Raw DNG file? Is it not possible for LRT to take advantage of the DNG file capabilities? I'v done a number of searches in the Forum for this answer yet was unable to locate any discussion on this matter! Not a big issue, just curious as to the reason! Any info would be appreciated!
Excellent question, I'm looking forward to the answer. I use Bridge/ACR rather than LR, but your question is applicable to me as well.

As a "work-around" solution, you can save the DNG "again" as a "DNG", the new DNG will have the xmp (sidecar) parameters embedded again. Then delete the original DNG and xmps.

It's an extra step and somewhat ackward, but I find it works. I don't like having 50,000+ xmp files around when they are unnecessary, I don't care how cheap disk space is.

I look forward to Gunther's expert response.

Rich in San Diego, CA
Writing the XMP into the DNGs itself is slow like hell. So I decided to work with Sidecar-Files as well to considerably improve the speed of the workflow. Lightroom and Bridge will prefer the sidecar files over the embedded XMP-data, so everything works fine!
(2012-12-23, 12:56)gwegner Wrote: [ -> ]Writing the XMP into the DNGs itself is slow like hell. So I decided to work with Sidecar-Files as well to considerably improve the speed of the workflow. Lightroom and Bridge will prefer the sidecar files over the embedded XMP-data, so everything works fine!

Thanks for the response Gunther; As I said in my question "it's no big deal" but I was apparently under the mistaken impression that any adjustments to a DNG file would automatically be stored within the file without any additional outside input. Didn't realize that it required additional code/programming in order to be compatible with other software! Well, in the end it has little effect on my happiness with LRT and the improved results in my time-lapse processing. Again, thanks for your continued efforts in improving your software as well as your efforts within the Forum!
so why don't you also write sidecars for JPEG files? Reading/writing JPEG is slow as hell.

M
Because literally no one really into time lapse uses JPGs, for example JPG sequences with XMP are not supported by After Effects either.
I would rather go and use lossy compressed DNG if you want to save space.