Hi Verlyn
I can answer some of your questions, based on my understanding.
The workflow engine does store the document itself as part of the workflow. In fact, it records the historical state of the document at each point that someone in the workflow worked on it. You can see this by looking at the "Participated" item in Form Manager, where you can see the historical value of each form that's been submitted. Any workflow attachments are also stored in the database.
It gets a little more complicated. Depending on how you structure your workflow, you can choose to either store the entire PDF (in a document or binary variable) or just the data (in a form variable -in which case the data is merged with an xdp template whenever someone wants to view it).
Document variables are also a little more intelligent: you can specify a size threshold. Below that threshold, the document is stored as a blob in the database - above the threshold, the document is stored in a folder on the file system. The default threshold value is 64K.
I hope this helps...
Howard Treisman
http://www.avoka.com