Can someone guide me in how the WCF, DAO and DTO layers communicate with each other? I would appreciate if someone can specify which layer comes first and then how it interacts with the next layer and so on.
Looks like you have no idea what do these terms mean. First of all non of them is a "layer".
So example usage of these terms in real architecture can be:
Data Tier (Db server)
Business Tier (Application server)
Presentation Tier (Web server)
This architecture is only for big projects. Usually you don't need to separate presentation and business tiers and so you don't need WCF service layer. In such case your presentation layer can access business layer directly without using DTO.
Edit:
Based on your comments I'm adding these informatios.
Session
can be called DAO because it provides operations to interact with DB but it also hides DB's details.