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The internal repository is the place where LC stores all of its assets for use in a project. It comes by default with the product and is part of all modules. LC Content Services is a separate module that is used for those Customers that require a Content Management system. LiveCycle does expose services that you can use to interact with Content services. It does not replace the need for the internal repository. It is a separate charge module and can only be purchased in conjunction with another LC module.
Hope that helps
Paul
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