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Yes , if you install on these either the web-versioned Forms 9i or upper or Forms6i (client-server) release....
Is there a way to run the forms server on local computers
Installing Forms 9i or upper version you have to run the OC4J Instance first....
Yes. Some months ago , the Oracle XE(Express Edition) has been released (it's free) which can be installed locally and of course can be configured to replicate the data to the master.....
then replicate the local databases to the master?