The shortcut refers to three files:
The mdb file is, well, the database, but it is now aware that it needs
a password and user login before it can open.
The user details are stored in the mdw file (the WorkGroup). When you
type in your login, it is compared with this file to see if you are
allowed access.
Finally, you need good old MSACCESS.EXE to run the thing at all.
The shortcut basically opens Access and passes it the locations of the
database to open and the WorkGroup file. Access takes over from there.
You should move your mdw file to the server. You don't need to
recreate it. So long as you open Access from a shortcut which points
to it, you will still be able to edit the WorkGroup and add/delete
users. But every user will need to use the same WorkGroup file, so it
needs to be somewhere where they can all access it. Typically this
would be the same folder as the database itself.
You should end up with:
One mdw (workgroup) file on the server
One mdb (database) file on the server
Each user has MS Access installed locally on their own PC.
Each user has a shortcut that points to these three files. The
shortcuts are likely to be different because the location of
MSACCESS.EXE may vary from machine to machine. Also, different users
may use different letters for the server drive.
That answers you immediate question. The next bit (below) is looking
forwad a bit further, so don't worry about it until you've got the
shortcuts etc working.
Your next task is to Split the database, which means splitting it into
two separate files. One contains all the data (tables) and stays on
the server. This is the "Back-End Database". The other part contains
all the forms, queries, reports and modules and you can give each user
a copy to save on their own PC. This is the "Front-End". There is a
Splitting Wizard in Access to do this.
The shortcut would then point to the Front-End on the users PC instead
of the database on the server. The Front-End knows where the tables
are and everything works pretty much exactly the same (certainly as
far as the Users are concerned there is no difference), but now you
aren't squabbling over who can use the database; you all can - at the
same time.