OK..from site menu choose New site, the box at the top is site name. Here you put in just that the site name so that could be chephrenrepairs.com well it could be!!! The next little box is local root folder, this is only the place you are going to store the files locally.
The Site name is not that important but the local root folder is important, is should be where Dreamweaver 8 actually puts the files that you create locally, it could just be a folder you create under my documents, in other words a simple folder on your local hard drive.
Dreamweaver needs to put the web pages to the Local web server, this is a little different, and you should be aiming to put them into C:\Program Files (x86)\Apache Software Foundation\Apache2.2\htdocs.
This path above is the default path to install Apache2.2, except that technically the path ends after Apache Software Foundation. apache is actually installed into the directory Apache2.2.

Once you have actually installed Apache you can explore your computer to find the htdocs directory, it will be where i describe above if you are installing on a 64bit version of windows 7.

In a local testing environment, the place where you put the new web pages is usually called htdocs or wwwroot. Mostly I prefer to call it htdocs and that directory will actually exist inside the apache software's own directory structure.

In order to look directly at the server you put in this to the Address bar of the browser, either or http://localhost

Dreamweaver has a part of it called Manage sites, and it is this part that you do use to set up where to write files to locally where to put files to the local Apache web server and how to set up ftp to actually put web files (pages) to the live web server you have.
It is true that there is some variation on exactly how Manage sites works from one version of Dreamweaver to another, but the underlying principles of what is does remains the same.
When defining the local Testing Server make sure that the the server folder is the actual htdocs inside the Apaches file structure, and make sure that the Web URL is http://localhost.
Ok so why would you want to do this and what will you need to do so?
To answer the question you will need a web server if you want to test any web pages that you write on a local computer.
There are various Web Servers available, but Apache is well recognised, works well, is very popular, and is Free... are you convinced!!

In order to have a web server ofcourse you need a computer to run it on and of course internet access. Preferably broadband, and a little time of course to download the software and install it.

There are a number of versions of Apache and we are at the moment downloading Version 2.2.10 (win32), and am installing it on a machine running Windows Vista Home Premium. You can install it on a computer running Windows XP if you like, we have done this sucessfully....
One problem you may encounter is that you may point your browser to the place where the apache server is and it may not display your web pages, this can be very frustrating and can be caused by several possible reasons, plus can be tricky to fix. We will say more about this below.

Another problem you may encounter is simply down loading the apache Web server sofware, we tried downloading apache web server using Firefox version 3 and discovered that is could not find the mirror to download from. We solved this buy using Internet Explorer version 7, but I think version 6 will work also ok...

An Apache Web Server will effectively serve a page up to a browser, and it is no diffrent when you point a browser at your own machine. However there are a bunch of things, that can easily go wrong, and it is difficult to sort this out...
Here are a few clues..... firstly an apache server will be listening to a particular port. generally Apache listens to port 80. It is possible to configure apache to listen to port 8080 instead, and if you put into the browser the address of the local machine but do not spify the port as well as the url, you may find it doesn't work.

Notice that a server, a web server in this case, running on a local computer will be found at, but you may need to specify the port as well as the ip address, you do this by typing notice the colon is separating the ip address from the port.