Why does the MDE file have to be on the server? Hopefully you're not
intending to have all of your users share the same MDE file!
The proper way to have a multiuser application is to split the application
into a front-end (containing the queries, forms, reports, macros and
modules), linked to a back-end (containing the tables and relationships).
Only the back-end (which would be an MDB, since there's no point in making
an MDE for a table-only database) would be on the server. Each user should
have his/her own copy of the front-end (which usually would be an MDE),
ideally on his/her hard drive.