A search for charmonium and other new states is performed in a study of exclusive initial-state-radiation production of D Dbar events from electron-positron annihilations at a center-of-mass energy of 10.58 GeV. The data sample corresponds to an integrated luminosity of 384 fb-1 and was recorded by the BABAR experiment at the PEP-II storage ring. The D Dbar mass spectrum shows clear evidence of the psi(3770) plus other structures near 3.9, 4.1, and 4.4 GeV/c^2. No evidence for Y(4260) -> D Dbar is observed, leading to an upper limit of B(Y(4260) -> D Dbar)/B(Y(4260) -> J/psi pi+ pi-) < 1.0 at 90 % confidence level.
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