It will store them in the /riivolution/save folder when enabled.
This XML can be placed on a device to redirect all of your savegames at once. That's not to say this package doesn't work for Brawl, but large sets like Brawl+ or Brawl- require a specific XML to work. NOTE: For Super Smash Bros Brawl, many code sets are larger than the default allowed size for Ocarina codes, and will require a special XML to work properly. The XML no longer requires you to change GAMEID as it now uses the info from the disc inserted to get the name for the loaded gct.
This XML package can be used to run your Ocarina codes just as you have been using them with Gecko OS, in /codes/GAMEID.gct.
