Both A) and B). For B) you do not need to copy files to scooter directory.
If you choose A), your project is located directly inside the scooter home directory. And you can run your project with the following command:
> java -jar tools/server.jar blog 9090
If you choose B), your project is not installed inside scooter home directory. You can run your project with this following command:
> java -jar tools/server.jar /home/user123/blog 9090
Your code is not going to be copied to scooter installation directory.
A) is good for personal desktop during development. B) may be used on a center server box and everyone/application uses the same scooter version. That would be easiter for upgrade and disk space saving. Thus good for hosting type of deployment.
In either case, you should be able to edit the file and refresh browser to see changes as long as you use DEVELOPMENT environment.
At the time of generating a war file in order to send it to production team, you can use these commands:
For A): > ant war -DappPath=webapps\blog
For B): > ant war -DappPath=/home/user123/blog