DSXchange

When you install the suite, you specify whether to use the IBM Information Server user registry (internal user registry) or the local operating system registry.

So, understanding the above statement.
A. IF local OS registry is chosen. Then a user needs to registered on the OS user registry and also should be registered through the web-console as a DS user.


B. If IS server user registry is chosen then a userid doesn't exclusively need to be created on the OS. Is that true?

Yes. Local Admin means you should allocate suite and DataStage roles to your local operating system users and groups. Under Information Server Directory you get two users created for you (suite admin and WAS admin) and you have to create the other users and groups through the IS admin tool. There is a third option - you can switch from the IS directory to the WebSphere User Registry that gets installed with the WAS.