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XMP confusion

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I just can't get my head around this xmp thing. Some basic info:

 

I use DNG files

I back-up my Lightroom catalogue every time Lightroom exits

and under catalogue settings >metadata I have ticked:

Include develop settings in metadata inside jpeg, tiff & psd files

+ Automatically write changes into xmp

I am about to start using Photoshop

 

Some questions please:

 

1) When I exit Lightroom & back-up my catalogue, does this also write the xmp into my DNG, or must this be a separate operation

2) I've heard that auto' write changes into xmp can slow things down - is this correct for someone like myself who doesn't work with a huge number of images

3) From what I've read it seems to me that maybe when I send LR4 images to PS for further editing I should ensure that LR4 edits are written into xmp (so even if catalogue back-up writes xmp to the dng, if I've made say develop module changes during current session I'd still need to write changes to xmp before opening with PS)

 

The more I read about this the more confused I become. Can someone please answer these questions as simply as possible

 

Many thanks


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