foud the missing files from the previous install..... like you I didn't have the usual windows.old, but I too had the locked $inplace.~tr and $windows.~q directories. I decided to tell windows to unlock them so I could inspect the contents, and sure enough, all the files that should have been put into windows.old were divided up into those two directories. I don't know why windows setup didn't create the windows.old directory and transfer the files into it for the both of us.....
I wasn't sure if I would, but now I am definitely going to try doing another repair install to see if the directory is still not getting created. this is very odd.... like I said a post or two above, the windows.old thing has been apart of windows setup upgrades since at least win95, so why it is not getting created for us is strange. I have at least 1tb of free space free, so it isn't a matter of setup running out of working room on the drive.