When you are downloading something from I-net, it is downloaded to temporary file(usually TEMP dir- it depends on the paths that are set in ENVIROMENT VARIABLES) as the process takes place, and after verification(all data-whole file) are downloaded it is renamed and placed to folder where you selected to place it in "Save as" or other dialog in downloading request. The temporary file is deleted after this automatically.
Cache (I'm not totaly sure, but I think that this is right)
-cache is "cache" ;o). It is part of your memory which your computer uses in process in which your comp. try to "guess" (with help of complicated algorithms) which file/program will be used(read to/write to) in "near future"(in miliseconds and less) to speed up the process(copying, loading, etc.). Generaly an average success of cache is about 65%(it mostly varies). This is my guess ;o).
SORRY to hardware fans if I am mistaken