How does SMD see SMD agent configuration file?

Ok. So you install and configure SMD on solution manager server. Then you install SMD agent and run configuration assistant to generate xml files on java stack server. Am I supposed to move these configuration xml files somewhere on the server? Where? Any SAP suggested location? Is this what the solution manager diagnostic (publishing) wizard is looking for?

I find the installation/configuration documentation for SMD and SMD agent somewhat lacking! I can't even get the local SMD agent on the sulution manager server to register properly!