It looks like the location of ASP.NET Temporary Files has changed in .NET 3.5.
I found the new location today, and it was in the Windows User's AppData folder. Here is an example path...
C:\Users\[user]\AppData\Local\Temp\Temporary ASP.NET Files\
Previous to 3.5, the temp files could be found in...
C:\Windows\Microsoft.NET\framework\v2.0.50727\Temporary ASP.NET Files\
I don't usually have to be concerned with these files, but on occasion the cached files can cause problems with project builds. Some build issues can be resolved by deleting all the files in the Temporary ASP.NET Files folder.