Yes. Don't store your audio files on your desktop! You can accept VinylStudio's offer to move them into its recordings folder, or (better, probably, if you want to know where they are and what they are called) move them to a folder of your own choosing before you import them. That folder can be on the desktop. That might be a good compromise.
.crd files are moderately precious and contain your click repairs. The vsfiles folder contains the files to generate the waveform display. VinylStudio will recreate these if it needs them but it takes a few moments.
