As I understand the changes that Xara makes to the site code, if you only edit areas that are being rendered as text, then the htm page is changed, but the graphics aren't.
For the temporary hosting, you can use a package like xampp (
http://www.apachefriends.org/en/xampp.html) which is free and prety pain free way to install an apache and mysql server on your local machine.
I think if you are going to try to incorporate Xara pages into another application for publishing, you are just going to oopen up a can of worms as far as the difficulty and keeping track of what's where.
Does this help at all?
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