/.DocumentRevisions-V100
— that is the path most commonly associated with versions, but not the only path.
Rarely, you may encounter the expressions Transparent App Lifecyle, or TAL. Publicly available information suggests that:
The recent review by Ars Technica was probably limited to computers where only JHFS+ (Journaled HFS+) volumes were present.
Not all file systems support permanent version storage.
The following screenshot (taken from a work in progress) shows the type of dialogue that 10.7 may present when working with an application that supports the Transparent App Lifecycle with a file system without support for permanent version storage:

— observed whilst working with photographs on a camera where the partition type is DOS_FAT_16
Utilities such as Instruments (installed with freely available Xcode) or fseventer can reveal the paths that 10.7 uses in an environment such as the one pictured. In 10.7 (Build 11A511): subdirectories of ~/Library are used, with access not limited to the root user.
If data to support the TAL is inadvertently interfered with, we can not predict the consequences. Let's assume that bad things may happen. For this reason and others:
I strongly discourage people from making permanently visible the Library in the home directory
— if you wish to argue with that, please aim for a topic where ~/Library is a subject; thank you.
What's New in OS X Lion - Apple Developer — Auto Save and Versions — Resume)
Technical Note TN1150: HFS Plus Volume Format
How do I get autosave to work in Lion 10.7?
… permanent version storage …
The document is on a volume that does not support permanent version storage.
Expect Apple to publish additional information, including revised and additional manual pages, in due course.
Keyword: patience 🙂