it is related to Reader Extension ( for off-line forms) only or are there other uses for this app.
thanks in advance
The watched folder is a way of submitting documents to PDF Generator, just like SOPAP or http calls. The watched folder is a folder in the file system that is being monitored by LiveCycle, and when you drop a file into that folder, it is automatically converted to pdf.
Daniel is correct but I woudl like to add that any LC process can be started in this way not just PDF Generator. In your case you could use a watched folder to drop files into and have a process started that will recieve the document in question, Reader Extend it with a predfined set of rights then send the entended document back to the results folder (or some other way of delivering the file to the user).