Running PowerStore Locally
Yes. Just like it would work on your live server, you can install PowerStore 3 to work locally (see note below for additional info). However, it still needs to pass all the Server Diagnostic requirements that are presented in the Installation Wizard. For instance, curl will need to be enabled.
curl needs to be enabled on the server that is running PowerStore. This setting is the same whether local or remote. With XAMPP, it is not enabled by default and you will have to enable curl by changing the setting in the php.ini file. More information on this can be found at this post: showpost.php?p=43041&postcount=2.
Note: On a typical Windows XAMPP installation, this is stored in C:\xampp\php.
Assuming that there are no privileges preventing PowerStore from creating a new database for you, you can enter any database name in the database field. However, it may be easier for you to create a new database on your local machine using your preferred database management tool such as phpMyAdmin, MySQL Administrator, etc. Then use the credentials for accessing that database when running the Installation Wizard.
Note about Installing PowerStore 3 Locally
Although you can install PowerStore 3 locally, it is designed to get you up and running on your live server. The Installation Wizard is intended to be run once, and for the server that PowerStore will be running. If you install it locally, you will have to run the Installation Wizard twice, but also replace a number of files on your server (in particular the product images folder), and export your database from your local server to then import to your remote server.
A useful alternative for some people may be to install PowerStore to a directory that their domain does not currently direct to, set up the store and products, then redirect your domain when ready to go live. This won't be possible if you plan on using WebAssist extensions to modify a dynamic piece of functionality (i.e. Menu Writer menu/eCart functionality), but can save a lot of people time if they just want PowerStore running, but not publicly available.