Yes - this is possible on a single PC. The trick is that you need to set the primary DNS suffix for your PC for mirroring to work.
Normally, your pc will have a name like "MyName" instead of something like what you would see at work which would be something like "MyName.MyCompany.com".
If you set the primary DNS suffix to something like "local" so that your PC full name becomes "MyName.local", mirroring will be happy.
Now, For Windows 7 (which is what I am running) to do this,
- Open Windows Explorer
- Right click "Properties" on Computer
- Select "advanced system settings"
- You should see a button called "Change" (next to "To rename this computer or change its domain or workgroup)
- Click "Change"
- in the "Computer Name/Domain Name Changes" screen, click "More"
- you should see an option to set the Primary DNS suffix.
- Enter "local" and click OK
I am not sure but you may need to restart after this. You will be prompted if this is required.
For other versions of Windows, the equivalent of this is what you need to do.