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I'm not sure how well it works w/ third party wireless routers, but it works perfectly w/ my Airport Extreme.
Basically, Bonjour makes every computer on the network accessible by its name. So if you have a MacBook Pro named "Tom", you'd enter Tom.local as the address.
As for a web server, Apache is built-in. Look under Sharing in System Preferences.
BTW, are you familiar with the basics of setting up a TCP/IP subnet?
I'll try to check this out tonight when I'm when my Macs.
The name is set under System Preferences > Sharing. Click edit under the name to set it to what you want.