I was able to direct the Categories XML document to local destinations succesfully.
I used the IP rather than a DNS lookup, and I did not specify the port number. I am using a bone stock plain Apache install in ubnuntu (desktop). The only modifications I have made to the Apache server is adding a couple path aliases.
<category title="Stuff" description="My Favorite Stuff" sd_img="http://192.168.1.2/Roku/images/Stuff.png" hd_img="http://192.168.1.2/Roku/images/Stuff.png">
My second experiment with the SDK was to rewrite the sample videoplayer app to stream all the content from local sources.
My choice to use the IP was simply for simplicity. I don't have DNS set up in the DHCP my home network, and it is so small, I can manage 10-20 static IP addresses for my computers and other devices and still have plenty left for dynamic IPs should I need them.
-Shlep[/code]