With the new iCloud password manager, does it automatically save or are we asked if we want to save it?
You are asked if you want to save your passwords on iCloud when you insert it. See > http://support.apple.com/kb/HT5813
Also, where is the password manager located and how does it work - are there any sites I can get more info?
On your Mac, Keychain Access (in /Applications/Utilities) keeps a record of all the passwords inserted on your computer, including the ones saved on iCloud. Open this application and select "iCloud" in the sidebar to see all your stored passwords on iCloud.
On your iPod touch, iPad or iPhone, you can't access to all your passwords from an app.
My devices are currently saved through iTunes on iCloud. There is a box to check if we want it encrypted, should I?
Whatever you want. As the backup is on iCloud, there's no need to do it. That feature is more important if you have got the backup stored on your Mac.
If I decide to backup devices to my IMac, I will lose the feature of all devices being updated when changes are made, correct?
Of course not. You will be backing up your devices on the iMac, but you will still be using iCloud
This helped me a lot. I looked for the iCloud in the sidebar to see the stored passwords for iCloud but not there. I checked keychain an iCloud not there.
One other, what are the advantages of backing my devices on iTunes to my Mac or the cloud? Perhaps I am not quite understanding this...