mc12345678....you are correct in restating my question...."When creating the demo store, should the store's directory be placed as a sub-directory of the existing store or in a separate sub-directory that is at the same server folder level as the existing store?"

While I am still waiting for an answer, I am trending toward a separate subdirectory at the same folder level as the existing store (the second option in the diagram from my previous post), if for no other reason than backing up (ie., copy to my local pc) would double the amount of time and space, and needlessly complicate the backup process. Observations?