I decided not to take the OTA update, I didn't take the update because I just got the phone how I like it and I didn't know if my ROM would work well with it, I downloaded z4root.1.3.0.apk just in case, but I think I'll wait to hear if it works with my ROM or if another ROM will be released with that build.
Here's what I did in the meantime: I renamed /system/app/upgrader.apk to .bak to stop OTA updates in the future, I then changed /system/etc/security/otacerts.zip to otacerts.zip.bak, also located in /etc/security. I have at least stopped the nagging about installing the update that got downloaded for now.
I'd still like to find where it downloads to and delete it, does anyone know where the downloads live?? Thanks.
Thanks for this I hope it works. Thanks.