1.  Does the Oracle service on Win2K run in the security domain of its
login user (LocalSys)?

A: It runs as SYSTEM by default.

2.  If so, would that explain why RMAN can't write to a network drive
that's mapped by a different user who is logged in to the domain rather
than the local machine?

A: Services running as the SYSTEM user cannot access network drives.

Side question:  Am I correct in my belief that the Oracle service must
be running before an Oracle instance can start, and that it keeps
running even when the instance is shut down?

A: The service must be running to start Oracle.  The service is actually
the VOS portion of Oracle. ( Virtual Operating System - see James
Morle's book ) 

When the instance is shutdown, the service may be stopped, but that
is not required.

Jared

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