@sosaezi :-
OK. You've already told us which version of Puppy (Bookwormpup64). Can you tell us the exact build? Is it 10.0.5? 10.0.6? 10.0.7? 10.0.8? They're all slightly different to each other, y'see.
Also, are you running a Chrome package built FOR Puppy.....or did you download the .deb package direct from the Chrome website, and install that? If you did the latter, you've messed things up already, since Chrome expects to find itself in a multi-user mainstream distro.....NOT a single-user 'hobbyist' distro. The permissions are all wrong.....which is why it's better for us to unzip/re-build packages to work with the unique way in which Puppy handles many things.
Chrome always expects to find itself running as a "restricted" user, so immediately, "running as root" in Puppy is a big NO-NO as far as Chrome is concerned. We usually run it as the restricted user "spot", although it is possible to run it AS root via a few tweaks in the wrapper script (at the cost of somewhat lower security, since this disables the sandboxing).
When you run Chrome, where are you accessing these 'local' files FROM? Where ARE these local files, exactly.....what's their location in the file system? What directory are your local files IN?
@greengeek is on the right track - file:/// is what I always use, because this way of doing it is foolproof, and not dependent on specific browser commands or shortcuts.....and can, moreover, be used in ANY browser.
Mike. 