[wp-hackers] Theme updates and generated files

[ravi]

Hello all,

please point me elsewhere with suitable derision if this is the wrong  
forum to ask. Hoping its not:

Does WP's new update capability (for plugins and themes) blow away the  
existing directory before it installs the new version of the plugin or  
theme? If so, if a theme wants (or more likely it's author wants) to  
create some files (such as a custom stylesheet), what's a good place  
to put it so it doesn't get blown away on update? The DB would be a  
poor place, IMHO.

Thank you for any comments,

	--ravi