Where are my str files being stored?

I have a standalone inventory server running NW 6.5 with around 300 XP
workstations attached. A couple of questions:

Where are my str files? The Scan Directory Path in the inventory service
object is set to \sys\zenworks\Inv\ScanDir, but there are no str files
there. Workstations are being updated and showing correct info. The db
files are showing current modification dates. Is that where all of the
info is stored now?

Also, when I generate a report from C1, even a quick report, the CPU
jumps to 100%. Is this normal even with only 300 workstations to scan? I
ran sybindex, but that didn't help. Would I be better off configuring
the Windows ODBC for reports? Thanks.