Frontpage is very odd sometimes with this - I've had it go both ways.
I *think* once you republish your site to your server, the urls will be fixed. You'll definitely want to do a test page to double check.
I've panicked before when my urls pointed to my C drive (when viewing locally) but once the pages were published, they were the correct url
. BUT - I've also had it happen that Frontpage has screwed up my pages and it did point to my C drive once published.