Indexing local website

Hi,
I am new to indexing and htdig. I have two questions:
1) When we index local site (htdig and html documents are in the same
folder), are they fast or do htdig indexes them as if it is a different
website and all the requests come through internet. I have some limits with
my webhost and I cannot run a script for more than 180 seconds.
2) Do htdig have any configuration settings wherein we can put settings so
that it can differentiate between local documents and documents on other
servers.

Thanks