Each one of the "all", "default", "minimal" etc... server configurations provide a different set of functionalities. "all" has clustering features and is a superset of the other configurations. "default" has all the services (like EJB support) without the clustering services. So usually, it's the "default" configuration that users go for.
You can place that file in server/default/deploy and start the server using the run.sh/run.bat scripts. By default the "default" configuration will be started. However, if you want to start a different configuration, you can use the -c option and pass it the name of the server configuration. For example, to start the "all" config:
./run.sh -c all