Set Up a Localhost

We are looking to set up a localhost computer to test changes we make to OSProperty each time before going live with them. Especially before upgrading from OSProperty 2.9.3 to most current (3.0.3). We have several changes to classes, templates and other files that we would want to keep and make sure continue to operate correctly.
Is there a website or paper with directions/reccomendations for setting up a localhost?
Many Thanks for your reccomendations.
W L P

I've used XAMPP (from Apache) as my localhost test server ( www.apachefriends.org/index.html ).

The most important thing that I can think of with whatever server solution you use is that it must be compatible with Joomla (MySQL and PHP based, and able to run jQuery and whatever else your site needs). Pre-packages "WAMP" or "LAMP" (Windows/Linux Apache MySQL PHP) setups should get you everything you need

XAMPP is a cross-platform option (Windows / Mac / Linux -- hense the X in front), and includes Apache, MySQL, PHP and Perl within the package.