This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
Variables declared inside a constructor work exactly the same as local variables declared in a method. The scope is ofcourse the enclosing block (which might be the constructor itself). Variables are allocated on the stack, and objects are always allocated on the heap.