Along the lines of that question, what do you do if your interviewer asks you what your top choice is (and it's not the school you're interviewing at...)? Should you just go ahead and lie? It seems kinda obvious if you're interviewing at State Med School but you tell them you applied to say, Harvard, and you prefer State Med School over Harvard...
(note: this is not to knock state schools or anything...I'm just talking in terms of "prestige" and all that junk)
Oh and to answer your question, no, adcoms don't know which schools you've applied to unless you tell them, but they will know what schools you've been accepted at.