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To view hidden files and folders: Double click the "My Computer" icon on the desktop, once there, along the menus at the top, click on "Tools" from there, then click "Folder Options", a box of folder options will open up. Click the tab at the top labeled "View" and make sure "Show hidden files and folders" is checked or ticked in the options window there.
Then click the "Apply" button, then click "OK" button, after you've done that you'll see the window blink, and hidden files and folders will appear in a lighter shaded text from files and folders that are not hidden.
Try this: From the "Tools" pull down menu, select "Folder Options," select the tab that says "View," then click the option beside "Show hidden files and folders."
That should let you see the folder that you are looking for.
Not sure I follow - but I think you're looking at the temporary image file the software creates before transferring to CD.
http://www.microsoft.com/windowsxp/using/setup/learnmore/bott_03september16.mspx
You need to enable the view of hidden files on your computer in folder options. Local Settings is a hidden folder in your profile.