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What is the common use of plist? What kind of data we put in them? Is it always a dictionary kind of data we place in them? I believe we store them in either documents, temp or cache directory at run time, is it correct?

A: 

Your best source of information comes right from Apple:

http://developer.apple.com/iphone/library/documentation/cocoa/conceptual/PropertyLists/Introduction/Introduction.html

Hope that helps!

iWasRobbed