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Photoshop uses a percentage of the hard drive for file compositing - layers, effects, etc., any operation. For large files, that can mean a lot of space, and since PS also uses a good amount of RAM, the scratch drive speeds up operations by acting as a virtual RAM source. Most PS users use a different drive other than their primary drive for PS to use, because unless you've got a system that's setup for multimedia programs, it can tie up CPU and drive resources.

It doesn't make any difference which drive you specify, but generally users opt for a system's secondary drive or an external drive for the scratch disks (you can use more than one).

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Q: On Adobe Photoshop what is a scratch disk?
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