You can choose, either PN can overwrite the file, place it in the same fodler with a "_PN" added to the end of the file or save it somewhere else. If i just chucked my whole library in there I'd be left with almost no space on my HD.
Also the thing that annoys me about PN is that it doesnt save the file at the same bitrate as the original. So if you put in say 256kbps song its gonna come out saying that its a 320kbps, so it can get pretty confusing if you dont keep track of what you feed it.
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