With the .NET 3.5 SP1 (as of this writing in beta) you can run .Net applications from a network share! 

In the following message thread tvbusy writes: http://www.codeplex.com/smartclient/Thread/View.aspx?ThreadId=29782

.NET Framework will apply restrictions on applications started from a network drive.  .NET applications started from a network drive is executed in Intranet zone, which restrict reflection usage, the heart of Dependency Injection. This means you can't use any DI container (ObjectBuilder, Unity, StructureMap, etc.) if your application starts from network drive.

After installing the "first beta of .NET 3.5 sp1" on my server I was able to map to a share on my Vista Ultimate box and run an application from my development area and it worked like a champ!  

To clarify - I shared my demo application on my Vista Ultimate box;  mapped to it from my Windows Server 2008 w/beta 3.5 sp1 to drive A:, and was able to drag the A:Shell.exe application to my server desktop and run it with only a "publisher could'nt be verified" prompt.