As far as I know text_io is available through Forms only. utl_file will write on the special server folders only and will never write on locla machine. Syntax for text_io is exactly the same as UTL file except that destination folder can be anywhere on client and need not be specified in the system parameters.
yes, at least for the version I work on. I work on 7.3.2 and I faced this problem. I did see a clever solution where they had to geenrate file on server but it was through forms only. They opened the server fiel for reading using utl_file and wrote it line by line using text_io.