A question about SkyDrive.

I thought I might as well ask here, you guys seem to know a fair bit.

I've installed the new SkyDrive on my PC and have the SkyDrive folder. What I want to ask is if this folder is a direct link to the SkyDrive server, or a local folder programmed to upload to SkyDrive? I want to know before I put any important work in there, I don't want an Internet issue destroying my work.