An Application level variable is one that is stored on the server and is available to anyone accessing the web application in that specified virtual folder. So, if I went to www.somewhere.com and the Application variable "var1" was set to "joe", I would see "joe" when I calle dtha variable. If I decided to CHANGE that variable to "mary", when you came to the site, that variable, when called by you, would not equal "mary". If you changed it back to "joe", if I called it, it would say,"joe" again. it is kinda like a database entry, but w/o the database (it's much faster, but eats up server resources.)
ASP and JSP have that capability:
ASP: Application("var1")="joe"
JSP: application.setAttribute("var1","joe");
An application starts when the first user reuqests a page (ASP/JSP) from the application and ends when the web server shuts down or restarts.
Check out how to do chat with ASP or Flash/ASP...that might help you understand what I am talking about...
-j