why not locate your palettes on the server entirely?
and or add another path to your custom sub assembly palette in Options>Files>Tool Palettes
The problem that we experienced with our palettes being referenced on the server is that once someone edited the pallet es in their directory to not include the custom palettes it would wipe out the custom palettes for everyone. I will try to add the second path again and reply with the reasoning for why we went away from that as well, I do not remember the problems that we had with that to make us go away from that. The main go around that we found is that you re path your assemblies before working on them through Properties, it works but is a pretty crappy way of doing things.
Doc,
I don't think the 'solution' is the problem.
Given that you or someone else has endeavored to create the custom sub assemblies, and palettes, the other user(s) need to NOT edit those palettes given that they are or should be considered "The Company Standard".
I agree that needing to re-path is Less than Optimal, however that would be an issue to address with autodesk.
Let me see what else I can think up.....