referencing a remote XAP from a local html file

 Howdy SL Geniuses,
 I was curious about SL behavior that I've hit recently.  I've created an html page on my desktop.  Within the page, I create a SL control, and reference a xap on a server:
<object data="data:application/x-silverlight," type="application/x-silverlight-2-b2" width="100%" height="100%">
            <param name="source" value="http://server/test.xap">
            <param name="onerror" value="onSilverlightError">
            <param name="background" value="white">
        </object>
This creates a control on the page, but it neither throws an error or loads the xap.  If I reference a ...