Yes, you need to to have the debug executable in the target machine, or at least mount in the target machine the location of the executable in the local machine. Actually, if you chose to mount the folder, that's a better option because it saves you the trouble of having to copy the executable each time you rebuild it.
So what you need to do is the following:
1. make sure that the target machine has the CVI run-time engine, plus any other support files that your application might need at runtime.
2. Run the configuration utility in the target machine
3. In the local machine, load the project that you want to debug in CVI.
4. In the local machine, enable remote debugging by clicking Run>>Configure Remote Debugging, and enabling the Accept Network... option.
5. In the local machine click Run>>Debug
6. In the taget machine, launch a debug build of your application.
Hopefully you have Windows XP and you can use Remote Desktop to control the target machine from your local machine. If you don't, you can still do control it remotely, but you'll have to use VNC, for example.
Luis
NI