i'm using wp 2.0.4 running under xampp on my local machine, in general everything works perfectly and it's a fantastic, hassle-free and highly recommended way to develop and test your designs.
however, i've noticed one small problem:
when changing options on some of the admin pages, when i click the "update options" button i get a 404 error. what seems to be happening is that the "%" synbol is being stripped out of the address field, so it's looking for "http://localhost/my20web20site/wp-admin/options-general.php?updated=true" instead of "http://localhost/my%20web%20site/wp-admin/options-general.php?updated=true".
this error doesn't occur anywhere else throughout the blog, or when writing/editing posts, etc.