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Jamal,
I think that what you want is to place the files in a location that both the client and server can access them. My assumption is that you don't want to duplicate them because doing so runs the risk of them getting out of sync. I believe that they can be anywhere on your network.
One way to share files is via UNC paths. Let's say that you put the files on \\SomeMachine\SharedFiles. You need to make sure that both the client and server have access to this share. Let's assume that your clients log in using a domain account and that your server account is a local account. How do you give a local account on server P2 access to SomeMachine? One trick to doing this is to create the same local account on P2 (username and password must be identical). When you do this then access just works!
Best of luck!
Jamal,
You can put all the data on the server and then have the clients access it there. I think that it makes more sense to put the data on a server (either the GIS Server or one or more other servers) than on the clients. The idea being that the servers are designed to accommodate multiple users and are administered (e.g. backed up).
I was trying to address the following statement you made:
How the folder stored on the client machine (p1) will be shared to �??ArcGIS server Account�?� user on the server machine (P2) - attached?
Based on this question I assume that you wanted to put data on a client and have the server access it. This makes less sense to me but it is something that you can do.
The point of my response was to address (point out) a trick that can be used in order to machines to gain access to resources on other machines when not using domain accounts. The trick is that if the account (user name and password) independently exist on both machines then Windows will allow access. If that doesn't help you then just ignore it:(
Best of luck!