I want to create a dummy server on my system where I can upload the files from other machines using my ip address.
What are the steps to be followed? I am using Mac 10.6.
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You have many choices. If your computer is behind a router, and you want to upload files from computers outside your internal lan, you will need to setup port forwarding on the router. As far as your choices you could use afp (normal file sharing) if all the machines are macs. Otherwise you can setup ftp, sftp, WebDav, or ssh. Use google to find detailed examples. FTP is probably the easiest although it's not secure. But remember the "port forwarding" stuff no matter which protocol you choose.