Hello Hugh and welcome to TalkGraphics.
The way that I would tackle this is to create sub-folders under your root folder (usually public_html)
So let's say your root site is the English version. You create the English version of the site in Xara and publish it to your root folder, public_html.
You then create a French version of the site in Xara and publish this to a sub-folder 'french', same for 'german' & 'italy'.
The image flags on your root folder will link to either /french/index.htm, /german/index.htm or /italy/index.htm subfolders.
This is only one way. There is no reason why you can't create index-fr, index-ge or index-it files
Ignore Xara's warning, it's only a guidance.
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