Menu writer creates site relative links, in other words preceded with a slash. This is so the same menu can be used on multiple pages in your site with out having to make changes to accommodate for different paths.
When previewing the page from a web server, the forward slash tells the web server to go to the root of the domain, then look for the path in the link.
You are previewing from the file system however.In this case, the forward tells the browser to look for the path at the root of the drive you are on.
If you upload your pages to your host, the links should function properly.
I have now tested your theory above -- It still did not work.
If you click on the "Home" link at the site indicated below, you will see that it did not load the the page.
index.php
What is true is, it should reload itself when "Home" is clicked instead it seem to be looking for "Home" in index.php
It worked without any problem on my test server\localhost. It loaded quite well using the localhost path shown below.
index.php
Q: Why did it fail when the site was tested on a production server? {by this I mean when it was uploaded to my hosting server. It worked fine on my localhost, but it failed on the hosting server}
Many thanks,
Michael