Either in the current installation folder OR in your Documents folder.
That depends on how you use the application and which operating system you use.
When a wallet is created the application first tries to save it to the same place that the application is running from so if you have installed the application normally using the setup file then this location is most likely to be C:\Program Files\Kuffs Software\KPS.
Operating systems such as Vista or Windows 7 will prevent a standard user saving files here in which case your Documents\KPS folder is used.
This is to allow you to copy the whole application onto a USB drive and run the application on any computer that has .Net Framework 4 installed.
i.e If, after installation, you copy the whole folder C:\Program Files\Kuffs Software\KPS onto your USB drive with the letter E and run it from there, the the wallets will be saved in E:\KPS
Note that the file extension for wallet files is .SDF
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