>>>What are application hives?
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>> we load the necessary section of the registry from a file using the API call RegLoadKey() during application startup; whenever application-wide registry values are altered, we save off the subkey tree to the hive using RegSaveKey(), so that they're communicated to other stations running the app the next time the application loads. This simplifies the process of adding new stations to our app, since the first time the application loads, the application hive will be loaded.
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>For this to work, the app needs to be on the server, correct? So the other workstations can access the hive as needed?

No, but the hive file needs to be on the server, or at least on a shared resource that's available all the time that the application is available, and that the application can find. It does not have to be co-located with the .EXE file, so that you can copy the .EXE to your system locally.

For example, you might look in the startup directory, or look at a different registry key to find the location of the hive.