Hello Praveen,
The MII server uses the SYSTEM user as the account. Make sure that this account has access to the folder location. Refer the screen shot,
About the shared folder : You could try sharing it to every one.
Use the network path as : \\<<System Name>>\test\abc.xml
The Web path :: If you are running the workbench on the same system where MII/Netweaver is deployed, then the above path(in my previous reply) should work. Note that the server id (N73, N74, ..)and the instance number(J00,J01,J02...) would vary according to your installation.
Regards,
Tufale Ashai.