Sorry - as soon as I posted that I had an epiphany - I just needed to change the Local Root Folder to the one on the iMac rather than the laptop.
so you work from the macbook laptop on the files that reside on the iMac?
Can I ask you what you use to connect your laptop to your iMac?
In other words, does this work when your away from your iMac in another location, or is this just a local network?
Its just a home network - so the main mac upstairs in the office, and for using the macbook on the sofa or kitchen table.
ah, I see...
I work from both my work computer and macbook too, but they are in different locations most of the time.
I keep all my workfiles in folders on both computers that are synced through Dropbox.
So if I change something on one computer the file is changed on the other one too, so you're always working on the last version, wherever you are.
You'll have too define the site on both computers from Dreamweaver if you want to be able to put files to the server from both macs, but that is not much work. I could not live without it anymore, just open your projects from anywhere you are ans start working. No more forgotten files, USB sticks or e-mailing files to myself.
Try it out here: Dropbox
(this is a referal link that will give me and you a 250 MB bonus on top of the 2Gb of free space)
Microsoft offers a similar service called Live Mesh