Everything seems to save in Celemony documents with ARA. In standalone you can change the path to your project drive and save the Melodyne files in your actual Sonar project folder.
Is there any way to do this using ARA?

I guess I stumped the class with that question.
Okay, here's another...
Once I have "bounced to clips" is it safe to delete what's saved in the "My documents folder"?

I could be wrong but I'm pretty sure if you use ARA all Melodyne stuff is created/managed in the project audio folder. At least I've moved projects with active Melodyne clips between computers by copying the folders, without issues.

I have had no problem deleting the contents of the separations folder. Of course this is after I've rendered the effect on the track and Melodyne is no longer part of the project. I think this is just the working folder of Melodyne.
If you do delete the contents of this folder then you won't be able to undo any Melodyne changes you have made.

Yeah, I agree rebel007. There is a Melodyne folder in the project too, I just haven't seen anything in it yet.
I deleted 6 gigs of old Melodyne data from documents...it adds up.