This means that you can have all your Wowza applications running on the same server, but each applciation will be getting the content from a different location.
For example, if you have your action application (let's say an application called "vod1") configured to read content from /home/action location, then to request an action movie, your client will need to use the following playback URL:
The same way, if you have your comedy application (let's say an application called "vod3") configured to read content from /home/comedy location, then to request a comedy movie, your client will need to use the following playback URL:
Using a Flash client, when paying back the video on demand file, the user can hit the pause button on his player and can resume the playback afterwards. This feature is supported by Wowza server.