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What does RD-Install Mode actually do?

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I understand that you're supposed to install applications in RD-Install mode when using a Remote Desktop Session Host. But what does is it actually monitor? What kinds of applications would work just fine without installing it and simply copying the files to the server's c:\? What does the mode actually do? Why is this mode so important for RDSH servers? What's wrong with pointing a bunch of people to an exe that's never been installed?

Does anyone have any documentation on this subject? Thank you!


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