Network INstall question

In R2005, when I do the 'Remote Content' paths, am I creating a default
profile that points at the paths I am designating, or am I providing a
source for what gets installed locally? So, when I put S:\Acad\Plotters for
the plotters path, do I end up with an install that points to the network
for plotters, or an install that still points to the local folder for
plotters, but that folder has been populated by the stuff in
S:\Acad\Plotters?
If the latter, I would assume the best way to proceed is just to take all
the defaults, and use a custom ARG file to configure the real locations for
these things?

Thanks,
Gordon