You might be wondering, "Where is the file located when it is checked out?" That's a good question.
If you select the Use my local drafts folder check box, shown in this picture, the file will be stored on your computer. We'll cover the exact location in a moment.
If you do not select this check box, the file will remain on the server while you have it checked out.
In either case, the file will be reserved for your use, and your changes will not be seen by others until you check it in. However, of the two options, we recommend selecting the Use my local drafts folder check box. Why? Click Next to find out.