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Yes, feature services require SDE databases as the location of the data within the service. The help lists the steps to go through when you want to publish a feature service.
if you want replicate two-way you need GlobalID without check 'move edits to base' for version
for prepare data here details: http://resources.arcgis.com/en/help/main/10.1/0154/0154000003nt000000.htm
if you haven't: arcgis desktop std or/and basic, server machine, arcgis server and you want create feature service you can purchase a subscription arcgisonline:
here there is trial http://www.arcgis.com/about/trial.html
here there is calculator for stimate your credits: http://www.esri.com/software/arcgis/arcgisonline/credits/estimator
"..The layers and tables that you add to the map document are exposed by the service. The following describe feature service data requirements:
�?� All data must be from a single ArcSDE geodatabase.
�?� All data must be registered with the geodatabase.
�?� Write permissions for the ArcSDE data are required if you plan to allow edits to the data. When using OS authentication, these permissions must be granted to the ArcGIS Server account.
�?� Versioned and nonversioned data are supported; however, versioning is required if you plan on editing nonsimple types (for example, network edges) with the service. Unless required, it is recommended that the data be nonversioned. Nonversioned data scales better for editing.
The following data types are not supported in feature services:
�?� Annotations
�?� Dimensions
�?�Terrains
�?�Raster datasets
�?� Layers and tables based on SDE views
If these layers are present in your map document when you attempt to publish a map service with feature access enabled, you will encounter analyzer errors...."
here the details: http://resources.arcgis.com/en/help/main/10.1/index.html#//0154000003nt000000
'not move' gives you advantage of all versioned editing functionality : example you can do editing service feature in arcmap (because arcgis do a "local copy for editing" and so you need 'versioned', 'not move' and globalid (for replication)
here the details http://resources.arcgis.com/en/help/main/10.1/index.html#//003n000000rp000000
"if the ability to easily share the data with third-party applications is a priority. Registering as versioned with the option to move edits to base is useful if you require the benefits of versions but also need to share updates with applications other than ArcGIS"
Deciding how to register data
see here the details: http://resources.arcgis.com/en/help/main/10.1/003n/003n000000t0000000.htm