Light throws the following error:
light.exe : error LGHT0001: The system cannot find the file specified. (Exception from HRESULT: 0x80070002)
when a UNC path is specified for the -ext option, but no error is thrown when the same file is on a mapped drive. Note that candle supports UNC paths for the -ext option with no apparent problem.
Doc updated. In .NET 3.5 SP1, you can run the tools and extensions from the same network share but that won't make it work "across zones." See http://blogs.msdn.com/shawnfa/archive/2008/05/12/fulltrust-on-the-localintranet.aspx.