understand that we can write the new values to zend coiguration file using the Zend_Config_Writer, But I wanted to know that is it poosible to modify the existing values present in the configuration under the environment we are running, If it is poosible can you elaborate it with some code
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You have all you need to know here: http://devzone.zend.com/1792/manipulating-configuration-data-with-zend_config/ including code samples.