Oracle Downstream Capture

I have a question regarding this article in the link below:

http://www.databasejournal.com/featu...am-Capture.htm

The author says to configure log_archive_dest_2 as folllows:

log_archive_dest_2 service=sfdb.world noregister template=/u01/app/oracle/srcdb/arch/ladb/ladb_%t_%s_%r.arc'

1) What does this entry exactly mean, does it infer the location where
the archive files will be placed or where they will be taken from?

2) Should log_archive_dest_1 be configured? if so to what?, any location
you want the archive files to go too from the source database.

3) What should my log_archive_dest look like on my desintation machine?

If somebody can provide an example of the init.ora for both the target
and source machines defined in this article it would be greatly appreciated.

Thanks