Ok...Many thanks Murray.

That seems to resolve my problem.
I stlll dont understand the semantics DWCS3 have used in

"1.Edit local copies on my machine, then upload when ready."
which implies that I work local, then upload,

whereas
"2.Edit directly on server using local network"
implies that I am working on the remote copy.

but since the settings you suggested work, Ill not loose any sleep over it ;-)

Thanks again.