Committing changes

Hi

Hope this is the right place to ask about this. My question is best
asked with a scenario of the situation:

Your web server root is at C:\webs
You set up C:\SVN as the repository
Now, you add c:\webs\test to the repository
You check out a copy of the 'test' directory to work on
You make some mods and then commit the changes
In the repository browser, if you open a file it reflects the changes
you made in the working copy and commited.
Should the mods be reflected in c:\webs\test? Since that is the
initial directory added so I was under the impression that a commit
would update these files. If I am under the wrong impression then my
understanding of SVN from my previous job is wrong.

Thanks for your time

-- 
Regards
Vaughan
PS: BTW this is specified at windows xp with sp3 if that helps.
PSS: I dont think it is relevant but i dont have the apache svn module loaded