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This is a file for use with the Advantage Database Server, to allow programs to use pre-defined settings and configurations for the server connection.  Otherwise the program will normally search for the Advantage server on the network then will connect to the server as it sees fit.
The ADS.INI file is very expansive and all of its features are very well docuemented on the SyBase Advantage KnowledgeBase:

In terms of Medisoft, when it starts it will check the following locations for an ADS.INI file:
1. Application's Launch Directory (Medisoft Install Folder->Bin Folder)
2. The root of the Windows Directory (normally= c:\windows)
3. The Windows System Directory (normally= c:\windows\system32)
4. Client's Search Path (normally Medidata Root Folder)

If an ADS.INI file is found it will use this information to connect to the Advantage Database Server, if not it will search the network for the broadcasting Advantage Database Server.

There are many network cases and setups where this maybe required to correctly find and connect to the Advantage Database Server, but there are too many scenarios to try to document here.  The most common error received in Medisoft to indicate this may be needed is 'Datapath cannot be found' or 'Error 6420 Advantage Server Cannot be Found'.

For Medisoft's purposes the ADS.INI file normally is pretty basic:
1. Open Notepad and 'save as' ADS.INI to one of the four locations mentioned above.  (Make sure to update file types to 'All Files' when saving so it does not save as ADS.INI.TXT)
2. On the first line you will enter [ServerComputerName]
3. On the second line you will enter LAN_IP=X.X.X.X (where X.X.X.X is the Server's IP Address)
4. On the third line you will enter LAN_PORT=xxxx (where xxxx is the Advantage Server's Configured Port, can be checked using the Advantage Configuration Utility on the Server System default is normally 6262)
5. Save the ADS.INI file and test opening Medisoft again.