I am able to setup a link with another laptop (Win 7) and even able to send files (surprisingly around 3-4 MBps). But I am not able to locate where exactly the files are getting stored in my Ubuntu 12.04. Is there anyway where I can setup the default folders for it.
They are in /home/username/Public (in Ubuntu 13.04).
Yes search for "Personal File Sharing Preferences" in Applications from the Dash.
You'll get a menu of options and you can change Downloads as the primary folder to which files are bluetoothed to.
Normally files are saved in your /Home Folder check it out.
For me it was in /home/Public but if you already installed "Blueman applet" on you system, you can easily change the folder using its "Local Services" option
Any version of ubuntu just select File System in explorer and search public folder see your transferred files there then select make link and shift to desktop