I see in your installation document, you have mentioned about the configur.dat file;

>>Make sure that you also copy it to the program catalogue, as the one in the shared catalogue and in the program catalogue need to be the same.

But, in a network environment where server is used for sharing database and configur.dat file. Is this still necessary to keep a configur.dat file locally? I have been told in the past to remove configur.dat and denetwrk.ovl from local drive for any network installation. If I don't keep it in local folder what will happen?

It is just a way to get around deleting files. 

Deleting files when you install applications is not "good" management. it works the same both ways.

Crazy installation and amazing that it wasn't "fixed" until 7.0