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What is wdbsvr.app file used for? What's full path of this file? What's significance of this file ?

I'll again suggest you don't just remember answer & try to solve mystery behind this file. First where this file exists ? You can find this file under
Based on file location I am sure you can say this is related to Apache, & looking into modplsql/cfg , I am sure you will say its related to mod_pls (mod plsql component of Apache/Oracle 11i WebServer) configuration file. This file is used by mod_plsql component of Apache to connect to database. So when you type url http://hostname:port/pls/SID , whenever Apache(11i Web Server) finds that request is for /pls/ then Apache delegates this request to mod_pls component which in turn pick this file & check if there is any DAD with name SID (in our example its VISION11I) &
Sample entry in wdbsvr.app
[DAD_VISION11I]
connect_string = VISION11I
password = apps
username = APPS
default_page = fnd_web.ping

On typing http://hostname:port/pls/VISION11I , it will connect to database using apps schema & will return you page fnd_web.ping ( where fnd_web is package & ping is procedure or vise versa).

So story about this file doesn't stop here , this url which I mentioned about is quite useful in troubleshooting so you can check if database connection is working fine or not. Another thing you want to check about this file is since it stores APPS password you need to change here whenever you change apps password .

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