The local server method is a variation of the direct method, except that it uses a different server than the one for which the SiteSurfer applet is generated. Typically, this would be a web server you have setup on your own computer for development and testing of your web site. This method has all the benefits of the direct method, but will be much faster than retrieving files over a modem connection for processing.
The local server method may also be used to create addresses with relative addresses, rather than absolute addresses. More information on this subject is available under local mirror method.
There is more information about other build methods.