It should not matter. I would prefer "htdocs/mypotentialnewdomain". I'm not familiar with your host, so somebody who is may want to chime in.
Most hosting providers do not permit remote access to your database. I'm not familiar with NetworkSolutions, so i don't know if this is the case for you, but when you cannot access the database remotely, Dreamweaver will not be able to access information from the database that would be necessary to make certain changes with our extensions.
So, for many people, if they want to make changes to PowerStore with our extensions, they will want to have a working version installed locally and one remotely. Once they have made their changes on the local version, they would update the remote version with the updated pages, and if necessary, update the database on the remote server with the local version.
However, like i said, this may not be the case with your host. A quick test would be to define a site in Dreamweaver to your PowerStore files, open the index.php page then double-click on the database connection that displays in the Databases panel. When the MySQL Connection dialog displays, click Test to see if Dreamweaver can successfully connect to your database.
If this works, you should be able to work on the same database and files for making modifications as what is on the remote server. Just keep in mind that you'll likely experience significant slowness with some of our dynamic extensions that will be referencing your database a lot (DataAssist/eCart etc.).