I can't belive Sage told you that, it's complete bollocks!
I would uninstall the programs from the workstations then from within Windows explorer delete the Sage folder from within program files as Sage doesn't automatically delete the company data folder.
Then re-install Sage onto the workstations, when you go into Sage for the 1st time one of the initial set-up steps will be to specify whether you wish to connect to an existing data source or create new data.
You want to connect to an existing data source (should be the bottom option). Next to the option you should be able to browse to the data so browse to the ACCOUNTS or ACCDATA folder (can't remember which one Instant uses) on the server, make sure Sage is not open on the server 1st though.
This should work, let me know
Gareth