Exactly.
It's just a folder on my c drive and I gave it any name I wanted. It contains my entire site. So it's a folder with an index.html (my homepage) and sub folders containing all my other pages.
I created it when I originally created my site in FrontPage (before I switched to Dreamweaver) but I've always kept my site stored on my hard drive.
So whatever program you use to build your site you always want to store it in a folder. Just navigate to the section of your hard drive where you want the folder stored and say "New Folder" (I'm assuming you're using Windows?)
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