Question on using Vinyl Studio

I have all my ripped CDs on an external HD and stream them to a DirectStream with BridgeII using JRiver and JRemote. Now I’ve started recording my LPs to digital files with a Tascam DA-3000 which puts the files on a CF card. The CF card then goes into a card reader attached to my computer from where I transfer the files to the HD using the same directory structure as the CDs. For instance if I already have 3 Cannonball Addererley CDs in the artist folder with his name on it, that is where I’ll put the newly digitized LPs. I append the names of the LPs with (DSD) or (24 – 96) depending on which format was used.   So it would look like this on my HD:

Shared Music

    Cannonball Adderley

          In The Land Of HiFi

          Somethin’ Else

          Somethin’ Else (DSD)

          Things Are Getting Better

          Know What I Mean? (DSD)

Now I’m ready to start using Vinyl Studio to split the tracks, name the tracks, maybe remove clicks & scratches. When first starting VS it prompts you to create a collection and asks where you want to store it. Should that be on the HD where JRiver looks to find my music files? And is this new “Collection” the location I should tell JRiver to find the new digital files?

The VS documentation has a drawing showing: VinylStudio – Collection: “My Albums.mcf” and says “Within a collection, VinylStudio stores your recordings as a list of albums. These are recorded a side at a time and these recordings are then split up into individual tracks. It is important to realize that VinylStudio is not an audio editor. That is to say, it does not directly edit your recordings or any audio files you might have imported. Instead, any changes you make within the program are stored (in My Albums.mcf) and then ‘overlayed’ onto the original audio when you save your tracks.”

Can anyone familiar with VS help me out with this? Maybe an explanation is all that’s needed and I can just let VS do it’s thing once I know where to locate “Collection – My Albums.mcf