Does the API work with localhost?

1. I tried this briefly today and both URLs returned XML document with a single top node:

http://dandyid.org/api/return_services/{my_api_key}/seeminglee?api_key={my_api_key}&profile_type=public&user_identifier=seeminglee
returned <services>

http://dandyid.org/api/return_profile/{my_api_key}/seeminglee?api_key={my_api_key}&profile_type=public&user_identifier=seeminglee
returned <userprofile>

2. Also, I noted that there's a setting on my API page for service filters:
http://www.dandyid.org/beta/apiservic...

Does it mean that I should copy all the sites to mine in order them to show up or filter them out? I am not sure because the default setting has nothing listed... where I assumed that's the reason I'm not receiving any data, it appears that listing all of them returned nothing either.

Any help would be appreciated.

Cheers,
SML</userprofile></services>