set up local site using foxyproxy

I'm trying to set up a local environment on my windows.
I'm using xampp, I have successfully built mydomain.local, but I'm trying to build mydomain.com, so I used foxyproxy + firefox, changed virutalhost, after I did all these, I can access mydomain.com/readme.html, but when I access mydomain.com, I got a redirect mydomain.comhttp/mydomain.com,
Can anyone help me?

What's the best practice to set up a local site so that you can develop your plugins, themes for your wordpress site?

Please help.
Thanks,