It's as you stated. Copy makes a duplicate, leaving the original file as as. Moving moves the file entirely.
Editing a file only affects the file in use. A copy or a file located elsewhere is not affected.
Am trying to set up a network with xp Home edition. I am curious about a couple of things. What is the difference in copying verses moving a file to the shared document folder? I would thing that by copying it, one is "duplicating" it and thereby using up resources. IF that is the case, when you access a file and make changes, are the changes saved to both places? These may be stupid questions to experieced users, but I am not one of those. Thanks.