Have a physical dir as D:\PROPOSAL\LETTERS..put p2.doc in the letters Dir...

The Logical Dir PROPOSAL_DIR would be pointing ur Physical Dir D:\PROPOSAL\LETTERS ( If u look at OS point of view it wud be again a Logical Loc ).

'path_name'
is the full pathname of the operating system directory on the server where the files are located. The single quotes are required, with the result that the path name is case sensitive.
Abhay.