Where do checked-out documents go?

Upon checking out an document, I'm presented with this pop-up window which allows me to de-select the "use my local drafts folder" before committing.

I know that with the checkbox selected, my document goes into a SharePoint folder on my machine.

But what happens to the document if a User were to de-select the checkbox? (I have experimented and still don't know where the document goes)
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MsShadowConnect With a Mentor Commented:
IIRC, If you decheck it, it just goes in your temporary internet files location. It is still stored "locally".
It stays on the server. The whole purpose of the Local drafts folder is to be able to work on the document off-line.
sandshakimiAuthor Commented:
So what's the value in unchecking the option?
GreatGermConnect With a Mentor Commented:
You are correct MsShadow. Since you aren't actually running Excel on the server, the system needs to download a copy so it can present it to you in your local install of Excel. The difference is that if you check the option it will go to a directory that isn't as volitile.  
The value of unchecking is minor since it just means that all copies will be cleaned with your temp files.
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