OK, generally in Windows XP, these files are hidden so that they're not inadvertenly damaged or destroyed by accident.
As for programs sending files to hidden locations--the only thing I can think of would be if it's the default location (which itself would be highly unusual).
Can you choose the location of where to save your data?
I believe you can. My uncle uses QuickBooks, and he had the same problem. We fiddled around with it for a while, and I got it to save it to a folder I created on his desktop. So all he does now is drag those files into Nero and Nero burns those files onto CD.
default location is the C drive, but how silly is that? Dont we do backups in case something happens to our computer? If I click the Browse to change it to the E drive, it tells me that E is not accessible, incorrect function....sigh