Contributed By: Gordon McKenna [MVP MOM]
This is the Virtual directory location that you will be using as either the target or the source for your file transfer response, there are two options here:

Use Global Settings - use the directory specified in global settings\web addresses when you configured the file transfer folder.

Use Other Virtual Directory - specify a different virtual directory to the default.

The file transfer response uses the HTTP protocol to download files from a File Transfer server to a MOM 2005 agent. The files download to the %Program Files%\Microsoft Operations Manager 2005\Downloaded Files\<Management Group Name> directory. You can specify the default virtual directory as the source directory for these files by using the Web Addresses global setting dialog in the MOM Administrator console. You can override this setting by specifying other virtual directories for any Task or response. The source server must be running IIS 5.0 or above and the BITS service must be enabled.

Note
No default URL for the file transfer server virtual directory is configured during MOM setup. If you do not specify this URL in the global settings dialog you will receive the "File Transfer Response - Default global virtual directory not configured" alert until it is set.

Alternatively MOM can be configured to upload files from the agent computer.

The file transfer response uses the HTTP protocol to upload files from the managed computer to the virtual directory specified in the Web Addresses global setting. You can override this setting by specify other virtual directories for each Task or response. BITS requires IIS 5.0 on Windows 2000 Server and IIS 6.0 on the Windows Server 2003 family; BITS does not support IIS 5.1 on Windows XP.

File upload is available for only Windows Server 2003. You cannot use file transfer for upload in Windows 2000 unless Background Intelligent Transfer Service (BITS) 1.5 has been installed. For more information about installing BITS 1.5 on Windows 2000 on the Management Server (or the server that the files are being uploaded to), search for "Background Intelligent Transfer Service Version 1.5" (Server Component) on the Microsoft Download Center website. For more information about installing BITS 1.5 on Windows 2000 on the MOM 2005 agent, search for "Background Intelligent Transfer Service Version 1.5" (Client) on the Microsoft Download Center website.