No, local data cannot be displayed in ArcWeb Explorer. There are several ways to use your own data with ArcWeb Explorer:
· Upload your data to the ArcWeb Web site using either the Build tab on the ArcWeb Web site or the Data Manager Web Service.
· Use your own ArcIMS service if it is proxied as an ArcWeb data source (accessible from the ArcWeb servers).
· For point data or simple lines/polygons, if the data is available on a Web server and in an XML format, such as KML or GPX, your application can use AJAX to connect to your data and display it in the browser (similar to an 'acetate' layer).
· When using ArcWeb Explorer Flex API, if the data is available by way of ArcGIS Server, ArcIMS, or GeoRSS, you can use the API Extensions to display the data.