I am having an issue locating my XMP file for the images in lightroom along with LR2 ...
I know where my images are located but i do not know why the XMP files are not showing up under or in the same folder as the images.

Are they saved in a different location then where they should be or?

The reason i ask is because when i edit an image or a few of the images in lightroom i edit them to match with the rest of the clip i am working on but then when i save the metadata and image changes, I re-import to LR2 then it shows the original image not the edited file..

Grid View, CMD+A, CMD+s is what i have been working on and its not saving all the data for import into LR2

My workflow of what i have to do as a work around
Lightroom--> Edit images->Export(jpg)-->Reimport as new collection-->LRt2-->initialize--and so forth-->Export(mov)

Hi, normally XMP files are saved in the same folder as the image (RAW) files.
However, if you use JPG, the are being saved as Metadata right into the JPG files, so you don't see them. This is how Adobe intends it to be.