What are the conclusions on Application and Session state variables in a web farm or a web garden?

Answer:

In the user's session, a single client can interact with different servers or CPU's.
This has the following implications for Application and Session state variables:

1) Application state variables are unique to each separate instance of the Web application.
If the Web application is running on a Web garden or a Web farm, Clients can share information through Application state.

2) Session state variables are stored in-process by default.
You have to specify a Session state provider inorder to enable Session state in a Web garden or Web farm.