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Is it better to encapsulate the connection inside a DAO, ie have the DAO create or retrieve the connection and then close, or is better to pass the connection into the DAO and handle the details in code external to the DAO?
Follow-up: How do you mange closing connections if you encapsulate the connection inside the DAO?
The DAO should do CRUD operations and hide those operations from the callers. So you should encapsulate the connection.
On the other hand, if the upper levels are coordinating the DAOs (e.g. transactions) then you also could pass the connection into the DAOs (and close it at the same level you opened it, not in the DAOs).
Bottom line is… it really depends on the responsibility that each layer of your application has. Should the callers care where the DAOs are retrieving the data or not? If not, then encapsulate the connections.