Hello Jeff,
I know the Blu domain had had a lot of bad rep lately, not completely sure why as I have had absolutely a great experience with them.
To answer your questions:
1. YES, you can buy any of their templates and have it hosted by your own servor or hosting company.
Just make sure that your hosting company / servors match the requirements that are needed to host the templates.
I also would recommend you going with a reliable hosting company that way all you need to deal with are tech questions.
2. YES once you get your template set up, you can complete change and upload and all that jazz anytime you want as much as your hearts content.
All features and functions work the same and you can even make use of the client proofing section and shoping cart.
updating images has never been as much fun and easy. though there are certain keys to this.
each template will have very different sizing to it so this you mush pay attention to.
also make sure that all your images are name differently as the program will no recognize another image that is named the same.
MY EXPERIENCE:
from the day I bought a template, I received a personal email from the manager explaining how it all works. once I had emailed back to them my ftp passwords and such for my accounts, I got another email within 24 hrs and giving me a deadline as to when my initial control panel and site would be up.
from that point I received another email from a Blu Conceiger (sp?) who emailed me tips and facts as well as walked me through any questions I would have for the first 7 days. Then afterwards my file was transferred to tech support.
When i had problems and i have had a few, not many, I merely sent an email ticket to tech support and within 24hrs received my first response and then within usually another 24 hrs would receive an email from the programmer of that site either explaining to me what the problem was and what I need to do to fix it or they would fix it for me on their end and send apologies.
they have never been delayed in reply nor have they never NOT replied to my help.
I have purchased 3 websites from them and have not had any problems.
If you wish you may visit my commercial site which is up and running right now.
here is the addy. www.therockphotography.com
my second and third website is a "duo port". one half of it, the portrait site is done but my wedding side is being completed as we speak. I will forward that to you when it is done if you wish.
Believe it or not this truly has been my experience. I had heard many complain but have no experienced that at all and I am not even employed by them ... LOL..
truthfully I also purchased their templates bc I wanted to do a product review and see what was up with them for my own photography school. here is our web link:
www.imageexplorations.ca
www.myspace.com/imageexplorations
I did not tell them anything about me, i just bought it and experienced the journey.
I hope this sheds some light for you. if you have any further questions, please do not hesitate to contact me.
Many blessings,
Rockie Lee
QUOTE(SipperPhoto @ May 28 2008, 08:44 PM)

Hey ya'll,
I'm looking to possibly switch out my current site with something from BluDomain. The thing is, I already have a hosting service elsewhere, that is paid for, for 3 more years. I can't seem the find the answer to this on Blu's site, but...
Can I just buy a template, but host it on my own server? Can I still get the same support, as far as changing things out, and adding pics and stuff thru them?
Any help would be great!
Thanks
Jeff