Where do your photos go when you hit copy?

On the computer you mean? They are copied to your "clipboard." This is a temporary process that saves where on your computer the file you just right-clicked and hit copy was.

When you hit Paste, it makes (creates) the entire file again (copies it), and puts the new duplicate of the file in the location you Right-Clicked and clicked on Paste.

So to answer your question, it goes to your clipboard.

More info about the clipboard can be found here:

Windows_Live_Clipboard">http://en.wikipedia.org/wiki/Windows_Live_Clipboard