Application & System directory placement

[eluser]CoderReborn[/eluser]
I was reading Jelmer's Best Practice guide, but I'm still not clear on the Application & System directory placement best practice.

Simple questions:

On my hosted Linux server, the webroot is /var/www.

1) So, the main "index.php" stays at /var/www/index.php?

2) If I move the system folder to root ("/"), then in the index.php file, I should set

$system_folder = "../../system";

$application_folder = "application";

Correct?

Thanks.

[eluser]Dennis Rasmussen[/eluser]
That is correct.
Let us know if it doesn't work out for you

[eluser]CoderReborn[/eluser]
Works perfectly. Thanks.

But can someone explain why this approach is important?
I already do a URL rewrite so any accesses to "mydomain.com/system/..." would be rewritten as "mydomain/index.php/system...".
When someone tries mydomain.com/system, they get a "Directory access is forbidden" message.
Alternatively, I could create a mod_rewrite rule to send "mydomain.com/system" to the homepage.