Let me know if I'm mistake, thats only for my usage between localhost and live version not for using project1 and project2, am i right?
Also i asked about why we need to do that for DataBase as well? we can have a same database on our live host and localhost, correct?
First i though its for this usage: Put config.php on Server1 and set the setting for project1 & 2 (with their own server) and then point them to read from Server1 for project1 Or 2.