When I install a new OES server in my tree and install Novell AFP then DEFAULT the "directory server address" is pointing to the ip of the "existing eDir server with replica"
which you specify in the beginning of the oes installation. This is the ip of our master server which has all edir partitions.

I saw when the connection is cut between the master server and the local server. The users are not able to login via AFP.

Isn't it better to select "its own" as directory server for AFP?
If I select its own. Is it true that only users which are present on that local server (with its own small partition of that site) can login via AFP?

Directory server = master ip (all partitions) = all users of the whole tree can login
Directory server = local server ip (small partition which contains only users of that site) = only users of that site can login

Am I correct ?