>>Scenario: A given SQL server has all data and log files on an external disc array (including master and msdb data and log files). The server fails. A new server is stood up, and the external array is connected to it. How is SQL installed to point to the existing master and msdb files??
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>>What are the disadvantages of setting it up this way?
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>>Could / Should SQLs other internal files be installed on the external array as well (i.e. none of SQL on the C drive but all external)??
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>>All help is greatly appreciated.
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>Why you need to mess with system files? Can't you just copy your DBs and then attach them to new instance?
>I am pretty sure that SQL Server can not access DataBases which not reside on the same computer where it is installed, and I think this is right, because somethimes external drives can't be accessible (networks fails, other computer is not turned on etc.).

Actually, consider the active-active clustered servers with an external disc array. Each server in the cluster uses the discs in the external array. The databases do not reside on the server itself. SQL does do this, and in large environments it is more dependable. SANs (storage area networks) can be 99.999% up. The concern is being ready if one of the motherboards goes down etc.. Also, just copying the database(s) over does not copy the jobs or users permissions, etc.