Memories are not bottled up inside neurons. They are stored in the connections between neurons linked by synapses. With new experiences, new connections are made between neurons and others are lost. In a sense, memories are not stored inside matter but in the spaces between them. (Fields, R. Douglas, PhD. The Other Brain. p 22. NY: Simon & Schuster, 2009.)

Studies at the University of Alabama in Birmingham: long-term memories may be stored and preserved by the addition of chemical caps called methyl groups onto our DNA, a process called DNA methylation. The cellular memory is passed on even when the cells are replaced. It appears that short-term memories form in the hippocampus and slowly turn into long-term memories in the cortex. (Powell, Devin. Memories may be Stored on your DNA. New Scientist, 2008.)

Many researchers believe that explicit memories are stored in the cortical systems that were involved in the initial processing of the stimulus, and that the hippocampus is needed to direct the storage process. (LeDoux, Joseph. Synaptic Self, How Our Brains Become Who We Are. p 105-108. NY: Penguin Books, 2002.)

Memories are stored not only in the brain, but in a psychosomatic network extending into the body. Memory is encoded or stored at the receptor level, which means that memory processes are emotion-driving and unconscious (but, like other receptor-mediated processes, can sometimes be made conscious). There is a very close intertwining of emotions and memory. Most people‚Äôs earliest and oldest memory is extremely emotion-laden. (Pert, Candace. Molecules of Emotion. p 143-144. NY: Scribner, 1997.)

To understand memory you have to look at individual cells, because that is where memories are made. (Carter, Rita. Mapping the Mind. p 159. CA: University of California Press, 1998.)

PET studies: It appears there is a default network that becomes active whenever the brain is not specifically occupied and breaks off when the brain has other tasks to attend to. The default network utilizes large amounts of glucose (e.g., to create amino acids and neurotransmitters), and more oxygen gram for gram that a beating heart. With strong connections to the hippocampus, this default network appears to be involved in selectively storing and updating memories. (Fox, Douglas. The Secret Life of the Brain. New Scientist. 2008.)