Using latest release of Arduino IDE 1.0
I take from this: http://arduino.cc/en/Hacking/BuildProcess that the .o and hex files should be created in a sub-directory of the sketch's directory called /applet.
However, this is NOT happening. No such directory gets created, even if I have 'Delete previous applet or application folder on export" un-checked.
Does anyone have any other idea as to where Arduino might be creating these files?