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What's the best practice for development Craft installations? I think I would like to work on the production web server but in a hidden folder either upstream from my public HTML or as a subfolder.

Does it matter where I install and develop my Craft site? Looking for easy migration when I want to go live.

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The best way to do it would be to develop locally, ideally managed with a version control system like Git and then push your site to your server. Craft handles a multi-environment workflow very well.

From the Craft docs on Mult-Environment configs

A good screencast from Straight Up Craft

There are also several questions and answers dealing with this topic in Stack Exchange here.

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