Where did you hide the Christmas gifts?

We have friends who, despite all their planning and painstaking efforts to hide Christmas gifts - one of their kids found at least one. And it wasn't just any old stocking stuffer: it was the big daddy of the season - a video game system.
At first, the discoverer was feeling very victorious. But needless to say, everyone was upset - including the sibling who told on him. The parents were frustrated and a bit deflated. Still, they're giving him the present on Christmas day.
So, what gift-hiding tricks do you practice? Where is the best place to hide a gift? If your child discovered where the stash of presents were hidden - would you still give those gifts? Would you punish him or her?
If my kid discovered something meant as a gift for him - depending on the age - obviously I'd explain the concept of a surprise. As he gets older, I expect more common sense and sensitivity on his part.
I have to admit, sometimes I've hidden things in plain sight. And right now, I'm just hoping he doesn't decide he has to clean under his bed between now and Christmas!
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