What directory to run a server from?

I'm trying to set up a minecraft server with bukkit and the instructions says to place the.jar file in the directory you want to run the server from. Which directory is the best place to put it?

The.jar file needs to be in a folder as it creates a lot of files when running, this folder can go anywhere, it doesn't really matter where it is placed

Make a folder and name whatever you want. Then place the bukket jar file in. Then run it. It should creat the file needed for the server.