To answer your question, they're local to the xbox. They're in my F:\Apps\XBMC\Music folder.
Just set the log level to 0 (debug) and then tried to skip songs again, it froze like always and here's the log..
10-03-2005 15:46:41 NOTICE -----------------------------------------------------------------------
10-03-2005 15:46:41 NOTICE starting...
10-03-2005 15:46:41 NOTICE Q is mapped to:Harddisk0\Partition6\Apps\XBMC
10-03-2005 15:46:42 NOTICE load settings...
10-03-2005 15:46:42 NOTICE loading T:\settings.xml
10-03-2005 15:46:42 NOTICE Getting hardware information now...
10-03-2005 15:46:42 NOTICE Checking resolution 4
10-03-2005 15:46:42 NOTICE AV Pack: S-Video
10-03-2005 15:46:42 NOTICE AV Flags:
10-03-2005 15:46:42 NOTICE loading Q:\XboxMediaCenter.xml
10-03-2005 15:46:42 DEBUG loglevel: 0
10-03-2005 15:46:42 DEBUG haltonfatalerrors: false
10-03-2005 15:46:42 DEBUG showfreemem: false
10-03-2005 15:46:42 DEBUG maxretry: 0
10-03-2005 15:46:42 DEBUG enableshutdown: 0
10-03-2005 15:46:42 DEBUG protectshares: 0
10-03-2005 15:46:42 DEBUG mastermode: 0
10-03-2005 15:46:42 DEBUG mastercode:
10-03-2005 15:46:42 DEBUG startuplock: 0
10-03-2005 15:46:42 DEBUG workgroup: WORKGROUP
10-03-2005 15:46:42 DEBUG winsserver:
10-03-2005 15:46:42 DEBUG debuglevel: 0
10-03-2005 15:46:42 DEBUG defaultusername:
10-03-2005 15:46:42 DEBUG defaultpassword:
10-03-2005 15:46:42 DEBUG move: 220
10-03-2005 15:46:42 DEBUG repeat: 300
10-03-2005 15:46:42 DEBUG move: 220
10-03-2005 15:46:42 DEBUG repeat: 220
10-03-2005 15:46:42 DEBUG deadzone: 0.100000
10-03-2005 15:46:42 DEBUG home:
10-03-2005 15:46:42 DEBUG dashboard: C:\unleashx.xbe
10-03-2005 15:46:42 DEBUG CDDBIpAdres: 194.97.4.18
10-03-2005 15:46:42 DEBUG IMDBAddress: akas.imdb.com
10-03-2005 15:46:42 DEBUG thumbnails: $HOME\thumbs
10-03-2005 15:46:42 DEBUG shortcuts: $HOME\shortcuts
10-03-2005 15:46:42 DEBUG screenshots: $HOME\screenshots
10-03-2005 15:46:42 DEBUG recordings: $HOME\recordings
10-03-2005 15:46:42 DEBUG albums: $HOME\albums
10-03-2005 15:46:42 DEBUG subtitles: $HOME\subtitles
10-03-2005 15:46:42 DEBUG pictureextensions: .png|.jpg|.jpeg|.bmp|.gif|.ico|.tif|.tiff|.tga|.pcx
10-03-2005 15:46:42 DEBUG musicextensions: .nsv|.m4a|.flac|.aac|.strm|.pls|.rm|.mpa|.wav|.wma|.ogg|.mp3|.mp2|.m3u|.mod|.amf|.669|.dmf|.dsm|.far|.gdm|.imf|.it|.m15|.med|.okt|.s3m|.stm|.sfx|.ult|.uni|.xm|.sid|.ac3|.dts|.cue|.aif|.wpl
10-03-2005 15:46:42 DEBUG videoextensions: .nsv|.ts|.ty|.strm|.rm|.rmvb|.m3u|.ifo|.mov|.qt|.divx|.xvid|.bivx|.vob|.nrg|.img|.iso|.pva|.wmv|.asf|.asx|.ogm|.m2v|.avi|.bin|.dat|.mpg|.mpeg|.mp4|.mkv|.avc|.vp3|.svq3|.nuv|.viv|.dv|.fli|.rar|.001|.wpl
10-03-2005 15:46:42 DEBUG startwindow: 0
10-03-2005 15:46:42 DEBUG useFDrive: yes
10-03-2005 15:46:42 DEBUG useGDrive: no
10-03-2005 15:46:42 DEBUG usePCDVDROM: no
10-03-2005 15:46:42 DEBUG detectAsIso: no
10-03-2005 15:46:42 DEBUG displayremotecodes: false
10-03-2005 15:46:42 DEBUG dvdplayer:
10-03-2005 15:46:42 DEBUG cddaplayer:
10-03-2005 15:46:42 DEBUG mplayerdebug: false
10-03-2005 15:46:42 DEBUG CDDARipPath: E:\Music\CD-Rips
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(1)
10-03-2005 15:46:42 DEBUG icon: 102
10-03-2005 15:46:42 DEBUG label: 0
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(3)
10-03-2005 15:46:42 DEBUG icon: 106
10-03-2005 15:46:42 DEBUG label: 7
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(2)
10-03-2005 15:46:42 DEBUG icon: 104
10-03-2005 15:46:42 DEBUG label: 1
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(501)
10-03-2005 15:46:42 DEBUG icon: 103
10-03-2005 15:46:42 DEBUG label: 2
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(6)
10-03-2005 15:46:42 DEBUG icon: 105
10-03-2005 15:46:42 DEBUG label: 3
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(2600)
10-03-2005 15:46:42 DEBUG icon: 107
10-03-2005 15:46:42 DEBUG label: 8
10-03-2005 15:46:42 DEBUG execute: XBMC.ActivateWindow(4)
10-03-2005 15:46:42 DEBUG icon: 109
10-03-2005 15:46:42 DEBUG label: 5
10-03-2005 15:46:42 DEBUG execute:
10-03-2005 15:46:42 DEBUG icon: 101
10-03-2005 15:46:42 DEBUG label:
10-03-2005 15:46:42 DEBUG default: 0
10-03-2005 15:46:42 DEBUG Parsing
tag
10-03-2005 15:46:42 DEBUG Setting share to : F:\Games\,F:\HDDLoader\
10-03-2005 15:46:42 DEBUG Share Name: Games
10-03-2005 15:46:42 DEBUG Share Path: F:\Games\,F:\HDDLoader\
10-03-2005 15:46:42 DEBUG Share Name: Emulators
10-03-2005 15:46:42 DEBUG Share Path: F:\Emulators\
10-03-2005 15:46:42 DEBUG Share Name: Programs
10-03-2005 15:46:42 DEBUG Share Path: F:\Apps\,C:\xboxdash.xbe
10-03-2005 15:46:42 DEBUG Share Name: DVD-Game
10-03-2005 15:46:42 DEBUG Share Path: D:\default.xbe
10-03-2005 15:46:42 DEBUG Parsing tag
10-03-2005 15:46:42 DEBUG Share Name: C Drive
10-03-2005 15:46:42 DEBUG Share Path: C:\
10-03-2005 15:46:42 DEBUG Share Name: E Drive
10-03-2005 15:46:42 DEBUG Share Path: E:\
10-03-2005 15:46:42 DEBUG Share Name: F drive
10-03-2005 15:46:42 DEBUG Share Path: F:\
10-03-2005 15:46:42 DEBUG Share Name: G drive
10-03-2005 15:46:42 DEBUG Share Path: G:\
10-03-2005 15:46:42 DEBUG Share Name: DVD-ROM drive
10-03-2005 15:46:42 DEBUG Share Path: D:\
10-03-2005 15:46:42 DEBUG Share Name: XNS Network Share
10-03-2005 15:46:42 DEBUG Share Path: xns://192.168.0.1:1400/
10-03-2005 15:46:42 DEBUG Share Name: XBMSP Network Share
10-03-2005 15:46:42 DEBUG Share Path: xbms://192.168.0.1:1400/
10-03-2005 15:46:42 DEBUG Share Name: XBMSP Network Servers (Auto-Discover)
10-03-2005 15:46:42 DEBUG Share Path: xbms://
10-03-2005 15:46:42 DEBUG Share Name: SMB Network Share
10-03-2005 15:46:42 DEBUG Share Path: smb://DOMAIN;username:pwd@MyWindowsServer/pictures/
10-03-2005 15:46:42 DEBUG Share Name: WORKGROUP (SMB) Network
10-03-2005 15:46:42 DEBUG Share Path: smb://
10-03-2005 15:46:42 DEBUG Parsing tag
10-03-2005 15:46:42 DEBUG Share Name: C Drive
10-03-2005 15:46:42 DEBUG Share Path: C:\
10-03-2005 15:46:42 DEBUG Share Name: E Drive
10-03-2005 15:46:42 DEBUG Share Path: E:\
10-03-2005 15:46:42 DEBUG Share Name: F drive
10-03-2005 15:46:42 DEBUG Share Path: F:\
10-03-2005 15:46:42 DEBUG Share Name: G drive
10-03-2005 15:46:42 DEBUG Share Path: G:\
10-03-2005 15:46:42 DEBUG Share Name: Q drive
10-03-2005 15:46:42 DEBUG Share Path: Q:\
10-03-2005 15:46:42 DEBUG Share Name: DVD-ROM drive
10-03-2005 15:46:42 DEBUG Share Path: D:\
10-03-2005 15:46:42 DEBUG Share Name: XNS Network Share
10-03-2005 15:46:42 DEBUG Share Path: xns://192.168.0.1:1400/
10-03-2005 15:46:42 DEBUG Share Name: XBMSP Network Share
10-03-2005 15:46:42 DEBUG Share Path: xbms://192.168.0.1:1400/
10-03-2005 15:46:42 DEBUG Share Name: XBMSP Network Servers (Auto-Discover)
10-03-2005 15:46:42 DEBUG Share Path: xbms://
10-03-2005 15:46:42 DEBUG Share Name: SMB Network Share
10-03-2005 15:46:42 DEBUG Share Path: smb://DOMAIN;username:pwd@MyWindowsServer/files/
10-03-2005 15:46:42 DEBUG Share Name: WORKGROUPS (SMB) Network
10-03-2005 15:46:42 DEBUG Share Path: smb://
10-03-2005 15:46:42 DEBUG Parsing tag
10-03-2005 15:46:42 DEBUG Share Name: My Music
10-03-2005 15:46:42 DEBUG Share Path: F:\Apps\XBMC\Music
10-03-2005 15:46:42 DEBUG Share Name: F drive
10-03-2005 15:46:42 DEBUG Share Path: F:\
10-03-2005 15:46:42 DEBUG Parsing