  Until now, the spectral changes observed from persistent to dipping intervals
in dipping low-mass X-ray binaries were explained by invoking progressive and
partial covering of an extended emission region. Here, we propose a novel and
simpler way to explain these spectral changes, which does not require any
partial covering and hence any extended corona, and further has the advantage
of explaining self-consistently the spectral changes both in the continuum and
the narrow absorption lines that are now revealed by XMM-Newton. In 4U 1323-62,
we detect Fe XXV and Fe XXVI absorption lines and model them for the first time
by including a complete photo-ionized absorber model rather than individual
Gaussian profiles. We demonstrate that the spectral changes both in the
continuum and the lines can be simply modeled by variations in the properties
of the ionized absorber. From persistent to dipping the photo-ionization
parameter decreases while the equivalent hydrogen column density of the ionized
absorber increases. In a recent work (see Diaz Trigo et al. in these
proceedings), we show that our new approach can be successfully applied to all
the other dipping sources that have been observed by XMM-Newton.
