Thanks for the reply Jeff.
Initially we did not set up App folder in Backup server.But, in this case, we were getting 'Path not found' error. That's becos script was looking for Openbatch in backup server and since App folder is not setup, we were getting error. So, we created App folder in second server too..but, still getting issue...
You need to have a single FDM application folder share point, such as FDMDATA and then your application sub-folders beneath it.
Then your application path should be specified as UNC path (\\ServerNameFDMDATA\AppName)
You can update the path using <Add Application>
A) Choose <Add Application> at the login form
B) Login and highlight the application and choose "modify"
C) Update the application path.