"Your password file is called pwdINSTANCE.ora
and is located in the some directory as your initINSTANCE.ora file.
Usually: c:\orant\database\"

Not necessarily true. The initSID.ora file can be anywhere. If you follow OFA guidelines, the initSID.ora file won't be in the oracle home directory.

As far as I can tell, the password file is always created in %oracle_home%\database\ (ie generally C:\ORANT\DATABASE\ for versions prior to 8i)

Les