I almost put this in the AGS 10.1 General section, but landed here.
So just like the title says, not matter how I try, when I publish my GP service (results from a model) the relevant SDE data gets copied to the server down in \\servername\arcgisserver\directories\arcgissystem\arcgisinput.
The SDE DB is registered with the GIS server and no warning/messages appear about copying data at the time of publishing. I've been through tech support and the incident was escalated. The model is very simple....essentially moving selected features from one FC to another via append. The GP service runs successfully on the server but appends to that fGDB copy that resides on the server. Is this expected behavior?