Server Utilities :: Data Pump Import Error

We have a QA database on a VM server with Windows 2003 operating system and oracle 10.2.0.1 installed along with limited disk space.We received an expdp file from a client that is large enough that we had to copy it to a network drive (40GB). I created a new directory called IMPDMP with the directory path (using UNC pathing) to \serversharefoldersubfolder (our network mapped P drive, yes I included the backslash, but I have tried without it also). I also included the parfile here. I checked the grants and they seem to be fine

SQL> select * from session_roles where role like '%DATABASE' or role like 'DBA';

ROLE
------------------------------
DBA
EXP_FULL_DATABASE
IMP_FULL_DATABASE

SQL> select * from session_privs where privilege like '%DICT%';

PRIVILEGE
----------------------------------------
SELECT ANY DICTIONARY
ANALYZE ANY DICTIONARY
[code]....

My questions are this:

1) In interactive mode, does a dummy file expdat.dmp have to exist in the DATA_PUMP_DIR directory?

2) does my export have to reside in the DATA_PUMP_DIR directory (again, no disk space to handle the DMP file), one of the hard drives is just big enough to handle the space but since it has datafiles there also, it would crash during import when trying to extend.