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Is there more to it than ensuring the FE is installed on the Citrix server and each users runs their own copy of it?
The MSAccess.EXE app that is part of Office must be installed on that machine. But if multiple users will run on the same machine, there can be a licensing issue since the garden-variety copy of Office is single-user. @Pat Hartman has some experience with CITRIX sites and multi-user licenses so perhaps she can offer insight.
Could the front end being on one network folder and FE being on a different network folder (neither part of the Citrix Server that is called both of them) cause the issues I'm seeing?
I am not sure I understand the configuration you just described. Are you saying that the FE runs in machine A's memory but the actual FE file is on machine B's disk?
That should run but should have absolutely abysmal performance and your network guys would probably come after you one night with torches and pitchforks. For efficiency, an app must run where the physical file embodying that app is located. Otherwise, you swamp the network with program traffic (distinct from data traffic). You would have to load forms, queries, and modules with event code to even launch the app before it touches data. Then, each form action (opening or closing) ALSO triggers data movement from the BE file. If the FE is running locally, ONLY the BE data is transferred, which is normal and what most of the world of Access users see. But if neither the FE nor the BE are local to a machine, then EVERY ASPECT of the operation triggers multiple data bursts from multiple places (FE/BE).
Would the one user running his FE on Server 1 and another user running his FE on Server 2 (from folders on the Server) cause any issues? (I'm assuming not - conceptually this would be no different from me running the FE from my local computer and another user running the front end from their local computer.)
Here, you are correct. If the CITRIX/RDP user is running the FE from a private folder on the remote server, it is the same as a user running from a private folder on his desktop machine. Physically different location but logically identical isolation. (See above regarding legalities, though.)