@manono,
When I was looking up the pictures I found out that there are really a wide variety of locations for dens.
Varieties of trees/ roots seem to be common.
I think you're right about the babies being born during hibernation, though. They're blind at first but just like many babies are blind (kittens, puppies) and then are able to see by the time they emerge from hibernation.
One thing I remember seeing is that it's not true hibernation -- they sleep but they're not in the coma-type hibernation state. If they haven't had enough to eat in the fall, they'll emerge in the winter to look around for more food.