Dear Kelly, the bistreams like you said are joined to the items throught bundles.
The relation is:
bitstreams---bundle----item
between these relation are the intermidate table item2bundle and bundle2bitstreams.
The path of the file is saved in the field internal_id
and it saved in the folder that you installed
in the folder assetstore.
For example the bitstream with internal_id as 164410876697102632819538106564350084233
is saved in dspace/assetstore/16/44/10/164410876697102632819538106564350084233
The bistreams also has metadata.
In this metadata you can find data as title,source and others.
Best Regard
Gianpierre Calderon, UNMSM, PERU