I have a similar story to the OP.
I was working in the IT department of a large company during the summer of 2001. My job was to upgrade all of the computers from Windows 95, to Windows 2000. For the most part, this was fairly easy. Almost all of the computers had the same hardware, so it was a case of backing up the users files and e-mails, writing a disk image to the disk, and restoring their files.
One morning, after a batch of upgrades, I got a call from one of the girls whoes computer I had upgraded the night before. It went something like this:
"Where are my files? You deleted all my files!"
"I'm pretty sure I backed up everything important, where did you keep your files?"
"C:\Windows\temp"
"..."
Turns out, that's where she had been keeping all of her files. Every single file since she started working for the company some years ago.
I still can't fathom why she thought that was a suitable place. I mean, what could "temp" mean, other then temporary or temperature?