Originally posted by Jasvox Picassa should read DNG the same whether from a K10D or from a new K-5 or K-r.
Not quite. All these DNGs are camera-specific. There is a generic DNG format but to the best of my knowledge all cameras emit a camera-specific version. Bibble 5 supports the latter but not the generic version, which you e.g., obtain if you convert a PEF file into DNG.
Originally posted by Jasvox I find Picassa tends to to be warmish and over highlighted when viewing as opposed to standard untouched viewing on Lightroom.
"Untouched viewing on Lightroom" is not a well-defined term. Lightroom applies some standard development settings (e.g., more brightness and contrast) and the user can change those defaults. LR also has its own idea what the correct colour mix is; it differs from what the Pentax Utility program produces. Hence, if you don't make any adjustments in LR, it doesn't mean no adjustments have been made.