Actually, no, there isn't a tag file in the folder. I am not certain about CS, but in CS2 there are two ways to operate (RFS showed you the settings).
One way uses a separate XMP file for every photo - IMG_0001.CR2 will have IMG_0001.XMP to hold its tag, label, RAW settings, and so forth. This is the easy option, and all you do is copy the XMP file with the CR2 and you are set. If you copy the images using the browser it will automatically take the XMPs too.
The other way uses a single database file stored somewhere centrally for every image on the machine (not one file per folder), and I don't know how you can get it to copy the info out of there for use on another machine - there may be an EXPORT command to do it.
I always use the XMP method, because I understand it! It even means I can copy the XMPs onto backup media together with the RAWs.
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