Yes, if you import and Lightroom is converting and creating copies that means you are storing both a DNG copy and the original raw file on your disk.
On the import screen, upper right under FILE HANDLING is where the copy toggle is, and where the copies will be going.
If you do not want copies, uncheck the box, if it is checked then a copy of your original file is placed where ever it is pointed to.
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Thank you very much for this! I really appreciate the help
As to WHERE you are storing your images, that is where you have told Lightroom to keep them....
In the LIBRARY module, the left hand side of the screen is the navigator panel, it shows what folders Lightroom knows about (where your pictures are)
By clicking the PLUS sign, you can add a new folder - this brings up a file explorer window where you pick where you wish your pictures to be.
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To change where your catalog resides, go into FILE/CATALOG SETTINGS and you will see where your catalog currently is. If you wish to relocate it you can copy it anywhere you like, then by double clicking it you should be back into Lightroom and it will be set as your catalog location, or you can go to FILE/OPEN CATALOG or FILE NEW CATALOG to pick your catalog.
Note: The catalog can be anywhere as long as Lightroom knows where it is - it will tell Lightroom where your pictures are located, your pictures can be located anywhere as long as your catalog knows where they are. That is what importing is all about.
As to do you need to copy your originals - that is a personal preference - I used to do that, but now I keep only the converted DNG files, which are backed up in several locations (off site and on external drives. My active catalog is on an external SSD and my image library is on an external hard drive.
This link may explain a few things:
http://www.digitalphotomentor.com/tips-setting-lightroom-preferences/Yes, if you import and Lightroom is converting and... (