This SharePoint Data Doc storage XML file needs to be created by an administrator and when complete, stored in a Document Library for users to access. The information contained within this file together with the merge fields that you have placed in your template documents are all that is required to allow your users to auto generate reports, or generate merge letters and emails for your entire business.
All of the details that you create and save during the use of the application, such as Login details, List Connections, Queries, Tables, Merges etc. are all stored in the SPDDProXMLStore.xml XML file, which is located in your C:\Users\{UserName}\Documents\DataDoc\ directory.
The Concept:
A super user(s) creates the template documents that the business needs, including the merge templates, tables, formatting and document branding. Once all documents and merges have been created, the templates can be stored in a SharePoint Document Library. Then simply distribute the XML file to your selected Source XML document library. Each user can then be pointed at this SP Document Library and they can automatically reconstitute/regenerate any of the documents or merges at the touch of a button.
Note: If you have created a Standard Letter Merge for the user to run, then it is important that you ensure the relative paths to the template are the same for both of you (i.e. the same network share or the same explicit path, for example "C:\YourDocs\StandardLetterMerge.docx"), or inform them how to change the path to the document in the Letter Merge screen if this is not possible.
Ideally you should locate your SPDD templates in a Document Library of your SharePoint Site, which eliminates the problem of incorrect paths to templates completely.
If you do set up your templates in your SharePoint document library then you should also suggest that your users to make the following change to their local Internet settings:
1) In Internet Explorer, click Tools and the click Internet Options.
2) In the Internet Options window, switch to Security tab, click “Trusted sites” and click Sites.
3) Add the URL of this site and your domain name and close the “Trusted sites” window.
4) Go back to Internet Options, select “Trusted sites” and click “Custom Level”.
5) In the new-opened window, under “User Authentication - Logon”, please select “Automatic logon with current user name and password” and click OK to apply this setting.
6) Then click OK to apply all the settings and close Internet Explorer.
If this is not done then the only difficulty it causes to the Add In is that it will stop processing to ask the user for a login when accessing the document library for a template.