This week's book giveaway is in the OCMJEA forum. We're giving away four copies of OCM Java EE 6 Enterprise Architect Exam Guide and have Paul Allen & Joseph Bambara on-line! See this thread for details.
I would write the DAO as a seperate class(es) . I useally design the DAO classes around the object classes I need in my application not so much the tables. A DAO class can instanciate or persist an instance of an object in my application.