Question / Clarification on - SQL Server 2008 Management Data Warehouse and Data Collector

Question

I read this article at http://www.informit.com/guides/content.aspx?g=sqlserver&seqNum=202

Few Questions:

 

1. My understanding is "Data Collector" Tool / Utility / Service resides on the machine whose data we need to collect and not on "Management Datawarehouse Server". Right? If that's the case do you think upgrade tool will get challenging over a period of time, within an enterprise?

 

2. I assume the information that needs to be captured, can be defined using an XML file.

    Can you please share a sample XML file on your page or atleast over at http://sqlcms.codeplex.com/

 

3. Once the XML file is completely defined with an specific set of information to be captured, can the XML file be copied to the rest of the machine so that we have consistency in information that we are capturing across all machines.

 

4. The path ("C:\temp") in your sample image, can this path be defined as network path?