Running server and client on the same 'puter works fine. Using EQW you can even load up multiple sessions of EQ to make your personal little group :p.
But watch out...on a 1.2GHz with a GF4 TI 4200 running more than 3 EQ sessions simultaneous will drop the framerate too low to enjoy the game. Also take notice that some zones are generally more "dia show"-like than others (Maiden's Eye and Ssra Temple are the ones that come to mind...god I hated raids in Ssra because playing a cleric doesn't allow for too much graphic lag if you're in a 10+ min CH chain (that was before the mod rod nerf)...).
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