I just updated my Windows Phone 7 and I noticed that I lost quite a lot of disk space in the process as the phone backup hit my local machine.
Just in case you're like me and hadn't quite planned for backing up your phone onto your hard drive (I'm running low on disk space), the phone backup seems to dump a lot of 4K data files in;
c:\users\{user}\appdata\local\microsoft\windows phone update\
I’m blogging this here in case anyone else is trying to find that location. As an aside, I used windirstat to find those files as I couldn't seem to find a parameter to tweak for the backup file location.
The Phone update's looking good though 🙂