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Dynamics AX 2009 load balancing cluster

We are setting up a new DAX 2009 system and I wish to test load balancing across 2 AOS servers.
On the two servers (AOS1, AOS2) we have different test instances set up (eg Test1, Test2) that are currently accessing the same server & database. The test instances are actually identical (path, file structure) other than the instance name ( and hence path).

I am aware of how to set up a cluster to load balance without a dedicated load balancer, but am holding back due to a steatement in the AX Server & database admin guide (page 216) that indicates;
"Point all AOS instances to the same application files location and the same database".

I am assuming that the file location has to be the same on each server, which in our case would not be the case due to the difference in instance/folder name but would like to know this to be true before moving ahead.

Can anyone confirm this to be the case? I can create another instance but would prefer to limit test instances if possible.
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agradmin

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Apologies, but I am terminology challenged.....

Are we saying that recommended scenario is to have multiple application servers (eg AOS1, AOS2) with an identical instances on each (eg Test1, Test1), but have the application  ('file server') files stored in a central location and shared out for the AOS instances?

I can see how this would help with keeping files in sync, and am guessing that for fault tolerance a 2nd file server would maintain a copy.

Please confirm. I would also appreciate a link to any documentation that best explains this , especially if diagrams are included (I am plowing thorugh the Installation & Admin guide....)
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Thanks for the help - that really helped clear the File server/Application server/AOS server/AOS instance confusion