I could use some help trying to interpret some of the things I've read about the Environment Library as it relates to deployment. I'm hoping some of you can be kind enough to set me straight, as am a little confused. 

The Environment Library whitepaper that I downloaded from K2 says the environment settings can be hosted in either a Distributed or a Consolidated way. That is, Environment settings are either stored in every K2 database, or they are all stored in one K2 database (typically the Dev database). It seems to me like the Consolidated design will not work in a scenario where the Package and Deployment tool is being use to deploy-up between environments. This is because, from what I've read in the Package and Deployment tool user guide, the components being installed will automatically (cannot be controlled) use the Environemnt Fields belonging to the default environment of the Default Template on the target server. Unless I am reading something wrong here, there seems to be a discrepency in the documentation.

Furthermore, I don't understand why I couldn't  host the Environment fields for each of our K2 Servers (Dev, QA, and Prod) on each respective server and only that server. If I was to deploy only using the Package and Deployment tool (not using the IDE's), it seems like this would work well, again because of the auto-selection behavior of the tool. 

I'm thinking that either I am making some stupid mistake or your documentation has errors in it. Either way, I would really appreciate any help that people have to offer.

Thanks!

Kyle