Is this an "undocumented feature" in OD 1.9? I ask because it seems that simply having all relevant documents in the former directory would be more in keeping with the direction that Microsoft appears to be going with Vista and (I guess) 7. It makes more sense to me personally to have everything under a user profile documents directory tree.
A not-so recent upgrade to OD went the route of placing them in the My Documents path, but didn't remove anything from the C:\Path. For now, it comes down to user preference I think. I read a post about where to put them and such that bkgarbageman, Mirsguy and messiah1 talked about...forgot the post name though.
The dockzip feature places them automatically in the My Documents path. I don't see many people using that dockzip feature though.