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Referral Vs Alias

I learnt from "Howes, Development LDAP..." that referrals can point to entities in other location. With referrals, you can search the subtree in localhost and other machines.
However, I saw "Sun JNDI tutorial" that alias can point to an entity. And the searhing can be set with options "never, always....". I am very confuesd with the usage of them. Could anyone help me to solve my problem, please?
Q1. What are the difference between alias and referral?
Q2. If I search the entity in the same directory in the localhost, which one should I choose? Is alias better?
Q3. If alias are used in localhost directory, doesn't it need to make any connection to the server like referral?