Item Frames appear to not take up any kind of location - might be the solution to a number of related bugs. Namely, you can put multiple item frames in a single space (not just on top of each other, as was reported in a different bug). They also appear to be place-able alongside torches, paintings, ladders, and even regular blocks.
What I expected: You could have one item frame per air block, just like torches, ladders, vines, etc - things that are placed on the sides of blocks.
What actually happened: You can place multiple item frames in a single space alongside a single torch, ladder, painting/etc, using the same method without disturbing the frames.
Screenshot Details: Shows the overlapping of frames in a single space, with a torch overlapped on the side. Tested also that torch could be places in the nook, as well as ladders and redstone torches, etc.
Steps to reproduce: Build a small enclosure such as in the screenshot - 3x3x3 with a channel in the middle, so there are 3 blocks facing one another. Simply place one frame on each face, then put items into a frame. Then you can place a torch, ladder, or other item over it by aiming on the corners of the block face containing an item frame.
Edited: Tested it on the latest prerelease as well (1.4.4) as vanilla 1.4.2. The latest prerelease was tested without MCPatcher installed on it, unlike the vanilla test.