VERIFIED SOLUTION i
'deliverDocument' and 'previewDocument' Web Services create output in 'active-drive\tds\delivery' and 'active-drive\tds\preview' respectively. Apart from creating output in 'tds' directory, output is sent back to client as an attachment with XML response. There is no configuration available in EngageOne to ensure that Output is not sent back to client as attachment.
UPDATED: April 13, 2017