In the step by step instructions - see below
[In the Destination Folder area of the Setup Type dialog
box, verify that the Program Files location is set to a
valid local drive on each node (for example, C:\Program
Files\Microsoft SQL Server) and that the Data Files
location is set to the drive selected on the Cluster Disk
Selection dialog box. If you want to configure a specific
directory on the drive for the data, click the Browse
button. Click Next.]

Does this mean C:\ drive is a local drive to each server &
not a shared RAID drive. In other words do you have to
install SQL Server on the C: drive of both nodes?
Presumably the data files have to go on a shared drive

Yes, the programs are installed on the local drives on
each node. The installer does it for you, so the same
local drive configuration must exist one each node.

All data files, including system DBs, go on the shared
disk array.

Fred,
Your understanding is correct. The Program Files are on local drive and Data files are on shared drive. This started from SQL 2000 virtual server. If you have worked with SQL Server 7.0 virtual server, you will
remember that we have to point both Program Files and Data Files to shared drive.

Additional Information:
-------------------------------
Microsoft Whitepaper - SQL Server 2000 Failover Clustering
http://www.microsoft.com/technet/prodtechnol/sql/2000/maintain/failclus.mspx

Microsoft SQL Server 2000 High Availability Series
http://www.microsoft.com/technet/prodtechnol/sql/2000/deploy/sqlhalp.mspx

Introduction to Microsoft SQL Server 2000 Clustering
http://support.microsoft.com/default.aspx?scid=/servicedesks/webcasts/wc051001/wcblurb051001.asp

Microsoft SQL Server 2000 Virtual Server: Things You Should Know
http://support.microsoft.com/default.aspx?scid=/servicedesks/webcasts/wc032602/wcblurb032602.asp

Microsoft SQL Server 2000 Virtual Server Basic Setup, Maintenance, and Service Pack http://support.microsoft.com/default.aspx?scid=/servicedesks/webcasts/wcd061002/wcdblurb061002.asp

Microsoft SQL Server 2000 Failover Clustering Disaster Recovery Procedures
http://support.microsoft.com/default.aspx?scid=/servicedesks/webcasts/wcd101802/wcdblurb101802.asp

Microsoft SQL Server 2000 High Availability (MS Press)
ISBN 0-7356-1920-4

HTH,

Best Regards,

Uttam Parui
Microsoft Corporation

This posting is provided "AS IS" with no warranties, and confers no rights.

Are you secure? For information about the Strategic Technology Protection Program and to order your FREE Security Tool Kit, please visit http://www.microsoft.com/security.

Microsoft highly recommends that users with Internet access update their Microsoft software to better protect against viruses and security vulnerabilities. The easiest way to do this is to visit the following websites:
http://www.microsoft.com/protect
http://www.microsoft.com/security/guidance/default.mspx