If you use DDS textures, how is its LOD processed? As in, how does it know which mipmap to use?

Manually by shader? Auto by hardware? AckNex Engine?

If there is no "clear" answer, can you feed my some links or useful search-terminology
so I can read up on it myself? I cant seem to find any explainations 'simple'
enough for me to grasp its concepts...

Im trying to build a scripted LOD system (I only got A8 commercial), and I need
to know/figure a way to implement mipmaps, as I dont ATM...

Thanks dude...

"There is no fate but what WE make." - CEO Cyberdyne Systems Corp.
A8.30.5 Commercial