created an Originals Folder in My docs\My pics it also gets written to User My docs\My pics
Nothing wrong, Windows is being helpful (yeah, right) by hiding from you where the images actually get stored. Windows is configured by Microsoft for the average home user.
I wish it had an I know what I'm doing leave it alone setting.

On my machine "My Documents" in windows is actually "C:\Documents and Settings\paul\My Documents" physically on the disk.

If my wife logged in, she'd see "My Documents" too, but it would be a different folder "C:\Documents and Settings\angie\My Documents"
She can't see my my documents, only her my documents.

I love win98se and use it for browsing and email minimizing exposure of other os to viruses
For security, I use a the firewall in my network router, backed up by the Microsoft firewall on the PC, and AVG Free anti-virus.
I use Firefox with add-ins to prevent software getting in:
Ad Block Plus for the 1 pixel web bugs for tracking
No Script to stop cross-site scripting and disable java unless I trust a site
Yes, of course I trust photographyreview.com

So far, nothing has got through that I can find. I use both AdAware and SpyBot to check for spy software and they found no software - only tracking cookies that are easily dealt with.