Yes, Scott's explanation should get you pointed in the correct direction. The easiest way is to use the ActiveX IntersectWith method as he's explaned, that is if you want to also allow for other entity types than only lines (e.g. polylines as well). If all your entity types are always lines, you could do similar using only the DWF data from entget - comparing each line's start (code 10) and end (code 11) with to other lines' starts and ends through the inters function.
The idea behind such code as per the attached flow diagram.