If anyone wants to know, the location for Windows users is /Users/Name/AppData/Roaming/Apple Computer/iTunes/iPhone Software Updates
You mean:
C:\Documents and Settings\%USERNAME%\Application Data\Apple Computer\iTunes for XP users right? I'm guessing the other path is for Vista users.
i inspected the progress on mac while downloading and found it to be here
/Users/usernamehere/Library/iTunes/iPhone Software Updates/