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Copying from one server to another works, provided that you edit mainfile.php as snow77 said.
I have the same XOOPS files and database in seven different places (three internet servers running Linux, and two workstations dual-booting Linux and Windows), and the only thing that's different is mainfile.php.
These are the parameters that potentially need to be changed:
XOOPS_ROOT_PATH
XOOPS_URL
XOOPS_DB_PREFIX
XOOPS_DB_HOST
XOOPS_DB_USER
XOOPS_DB_PASS
XOOPS_DB_NAME
You can also avoid that error by changing the value of XOOPS_CHECK_PATH from '1' to '0', at the risk of somewhat reducing security. But security isn't really an issue when running XOOPS on your computer, assuming that it's not accessible to the internet.
