I am having a problem with my PEK files saving to the wrong folder. I have my scratch set to an external drive and folder, and my media database set to the same folder. I have checked and unchecked the save files next to original several times with the same results. My pec files generate next to the original media files.
I have done some research and think it may have something to do with Windows 8. Any one else having this issue or know how to stop it?
Using external drives for media cache is generally a bad idea. External drives are - again generally - no faster than internal disks and usually much slower, the drive letter can easily change unless you have covered that in Disk Manager, and last the connection is often rather flimsy and can often cause bad connections, not to mention the short cable length.
General wisdom is to store your media cache files on the fastest disk in your system. That usually excludes externals.
To answer your question directly, no I have never tried to store media cache on an external, because my internal volume is way faster and therefore I have never encountered this issue.
Unchecking that box won't erase already created files. Be sure to delete those before running a new test.