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Picasa Pictures

If i upload a ton of pictures from my pc to picasa web albums, they show up in the gallery on my phone (obviously since sync is enabled.)

Now, Since it syncs these to the phone, does it actually download the images somewhere, if so where, or is it just downloading thumbnails? Or is it constantly accessing it via web? Reason i ask is I dont really want my phones storage getting burnt via picasa pix. However, if its storing it on the sd card (i cant seem to find them, but i havent looked very hard) I dont really care.
 
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