Question and Confirmation.

[Matthew]

  Each relay removes one layer of encryption.
> Tor does *not* encrypt and send packet headers.  Tor only relays the
> data within a TCP connection.
>
OK.  I get it.  I think.

Please confirm:

The data is encrypted.  The header is not encrypted.

So if my ISP is monitoring my traffic all they see for the header is the 
connection to the first Tor node.

In which case my question is: where is the information that tells the exit 
node which DNS resolution to do and therefore which website I am asking for?
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