There is a configuration/preference file in the application that was pointing to the folder where the application was installed. But it was pointing as following:
\ApplicationName\
What I did is changed it to the following (UNC):
\\ServerName\ApplicationName\
And the above solved the issue.
>What did you do to fix it?
>
>>Thank you very much. Right before I got this your message I resolved the problem. But I will still read this URL; I am sure I will learn a lot there.
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