When Web Connection runs in file based messaging mode it uses temporary files to pass messages between the Web server and the Visual FoxPro application server. These messages are picked up by the VFP server polling for the files in the temporary directory and it's important that both the ISAPI extension and the VFP server agree on this path. This option writes Path and TempFilePath values to wc.ini and wcDemo.ini (which is the demo application) respectively.
IMPORTANT
This directory must have FULL access for the SYSTEM and IUSR_ (on IIS) annonymous Web Server User Account. When a request comes in in file based messaging the Web server/wc.dll needs to create and write and read the temporary message files. This request runs under standard Web server security so this will typically be the IUSR_ account.