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Where are ExpanDrive files stored when they're being edited..?

I'm considering ExpanDrive as a replacement/supplement for DropBox (to use with the Amazon S3 service), since I have lots of files that I *don't* want to sync across all computers.

I see that it's possible to edit files stored on a server, but I don't understand where that edited file resides — is it cached locally, for example? If it's edited directly on the server, what's the lag when opening and saving?

If on-server file editing is possible, how are network congestion and/or disconnects handled?

These would be great additions to the ExpanDrive FAQ... ;)
 
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