>  If the actual frequency falls in between two frequencies of the DFT,
> there's no way for the DFT to produce just one or a few lines.

Of course there is, try it.  If you create a frequency that is half-way 
between two frequencies in the DFT, your DFT histogram will still look the 
same shape, the peak will just be shared between the two frequencies.

And of course if you analyse the DFT properly (ie not just look at a picture 
of the magnitude of each result) you will be able to determine the exact 
frequency.  I mean in the worst case you can just do an inverse DFT to get 
back the exact same signal!

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