I am a newbie to Lotus Notes. I have installed and configures lotus client along with designer & administartor packages but without a server. When I wanna create a db in lotus designer I need to give the server name where the db is to be stored, since I dont have a domino server I am giving it as 'local', this means that all the db's that I create reside in my local hard drive . I just wanna know about this LOCAL server working & properties & howz it different from domino server.
If I understand your question - Local means that the db is stored as a .nsf file in the Notedata folder, usually specified in your notes.ini file. You may get more specific help on the developerworks website which has a Lotus specific section http://www.ibm.com/developerworks/lotus/community/
Local means the database is stored on your hard drive, you can build applications locally just fine although your scheduled agents won't run as you need a domino server for that. Its actually fairly easy to install a domino server on your laptop, I've had various versions on mine forever. A locally installed server has its own directory structure but you will need to create a domain certifier id and a server id.
If your just experimenting with developing Lotus Notes applications then don't worry about a server as you can learn nearly everything you need using the notes client and designer.
If you use Local server (it doesn't matter if the file path is on your hard drive or a network drive) you are limited to single file access i.e. the database/application (NSF) will be exclusively locked by the OS.
If you want multi user access you need a Domino server.
If you are doing XPages development (Notes/Domino 8.5) you can even do this locally. It fires up a local web server.
The 'local' server does not run as a std server, so you cannot have scheduled agents running etc. You would typically use the client / local server in conjunction with a Domino server, providing offline access to databases (if required) using the client, and with these replicating back to the server. Either that, or you would use the client to develop applications to be deployed to a server.