Is there any reason why image transformations might not be working locally? I just get a bunch of these "http://site.dev/cpresources/transforms/7 404 (Not Found)" as error messages. The image directory has the correct permissions...
It is very likely that your "File System Path" on the asset source is unsuitable for a local environment.
You can set the fileSystemPath in your config like this:
'environmentVariables' => array( 'fileSystemPath' => '../../public' )
Then you can change your asset source settings to something like the following: