Resolution:
To perform an alternate base directory or read-only directory install of GridServer on Weblogic:

   1. Extract GridServer (GridServer-xxx-resin.tar.gz) and install as a web application in Weblogic. The following are two quick ways (This target directory will be the read-only location):

    * Log in to the Weblogic console and 'Deploy a new Web Application Module...' by specifying the extracted livecluster directory (datasynapse/webapps/livecluster) as the Target Module.
    * Copy the livecluster directory (datasynapse/webapps/livecluster) into bea/user_projects/domains/mydomain/applications. Install GridServer using the Manager Installation (http://localhost:7001/livecluster):

2. Use the Custom installation and specify a writeable directory in step 2a for Base Directory (the install will create this directory) and corresponding Base Url. For example, Base Directory: C:/ds/servers/weblogic_livecluster/weblogic_livecluster; Base Url: http://OSPREY:7001/livecluster/weblogic_livecluster.
Note: Weblogic will pre-pend livecluster to the url. Weblogic requires a repeat in the directory name to work, such as weblogic_livecluster/weblogic_livecluster.
3. Add the following to your weblogic.xml or create a new one in the livecluster/WEB-INF deployment directory:

        <!DOCTYPE weblogic-web-app PUBLIC  "-//BEA Systems, Inc.//DTD Web Application 7.0//EN"
        "http://www.bea.com/servers/wls700/dtd/weblogic700-web-jar.dtd">
        &ltweblogic-web-app>
            &ltvirtual-directory-mapping>
                &ltlocal-path&gtC:/ds/servers/weblogic_livecluster</local-path>
                &lturl-pattern>/weblogic_livecluster/*</url-pattern>
            </virtual-directory-mapping>
        </weblogic-web-app>

4. Restart the web application or Weblogic.