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D3 stands for "Duplicatable Version 3" - it's not for XOOPS version, it's a terms by GIJOE - a XOOPS guru from Japan. D3 modules means XOOPS module that can be duplicate (clone) as many as you like, with any directory name. You can put D3 module core (logics) under XOOPS_TRUST_PATH and instantiate them at many sites. When a D3 module is upgraded, at most cases, all you have to do is overwrite the module core under XOOPS_TRUST_PATH then all of its instances (under every sites XOOPS_ROOT_PATH/modules) will be automatically upgraded. You cannot imagine how convenient it is if you have 100 instances (100 sites, each site has one instance)!!
You may visit GIJOE's site at
http://xoops.peak.ne.jp to take advantages of some great modules (Protector, Altsys, D3forum, dbtheme, etc). Some great hacks to improve XOOPS performance are also available there.
There is a perfect article about XOOPS_TRUST_PATH here:
http://xoops-tips.com/modules/news/article.php?storyid=108Please look at it carefully and do some test. Let me know if you have problems.