For me, it's located at C:\Python33\libs.
For reference - this is not the same folder as C:\Python33\Lib - note the capitalization and lack of an 's'.
On one computer I was working on, I simply dropped a .py file into the libs folder and could import and use it like a library / module (sorry, I don't really know terminology very well), regardless of where the project I was working on is.
However, in trying to duplicate this on another machine, this doesn't work. Attempting to import simply gives a "no module named X" error.
So, clearly I'm misunderstanding the purpose of the libs folder, and how it differs from the Lib folder.
So, what exactly is the difference?