Thanks devinemke, I was a bit confused. I keep on having the idea if the files are being processed on the server, then its chewing up the server's bandwidth, but i just remembered that bandwidth is the actual stuff that is sent to the browser.
Just another question, how about image manipulation, like using GD library, resize a picture and store the new picture on the server. Since nothing is being sent to the user's browser, it is just using up the server's memory, correct?