http://iphoneincubator.com/blog/data-management/local-file-storage-in-ios-5 (http://iphoneincubator.com/blog/data-management/local-file-storage-in-ios-5)
It's quite interesting.
In GLBasic the PLATFORMINFO$("TEMP") is the "/tmp" path, where "DOCUMENTS" points you to the "/Documents" directory. The "Cache" directory is not accessable trough PLATFORMINFO$(), but as the article states, there's no difference anyway since iOS5.
So, in short: Documents are synced with iCloud (so reduce space used), and TEMP might be deleted when your app is not running.
Yeah I was reading about that too.. it sounds pretty handy. So does that mean if you have your game's save file in "Documents", then iCloud will keep it sync'd across all the user's devices? And you could store say unlocked content settings from in-app purchases in files and it'd be ok? Perfect :)