A question about the location of the files and the description-column

Hi guys,

I have two more questions:

1) Where are the uploaded files stored? Is it in my joomla database or are they uploaded to your server or somewhere else? Will they be saved when I make a backup of my website?
2) I saw a 'description' column per file. Can I make an HTML-desription per file (for example ' bold' or a <_BR_>, or is it just 'flat text"?

Thanks!