To hide edit button, you can just remove the Edit permissions for all the unwanted users. Do not customize JIRA unless it is absolutely necessary, your upgrades will start breaking.
Removing it this way doesn't stop people using the screen from links either. It's not secure, just inconvenient
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i agree with renjith.
just like we discussed here
permissions would be the smarter way.
but if you insist editing velocity files be informed that you will need to copy them back after any upgrade you make. also note that it could be the function is not working anymore after an upgrade due to some changes. (i experienced that one time)
but to answer your question...
take a look inside
$Your_JIRA_INSTALL_DIR/atlassian-jira/WEB-INF/classes/templates/jira/
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