They would normally run on the server and store your content in a database and generate the html on the fly, however, in theory they could also run it on the desktop and prepare a website to be uploaded for fully static distribution, the way this website mindprod.com works using static macros. The advantage of the second approach is you can host it anywhere with minimal strain on the server. The advantage of the first approach is the ability to change the layout of the website by the second.
The first thing to do is choosing which one to use is make sure it is alive and active. These sort of projects where there are so many so similar and all free, have a very high burn-out rate and they are quietly and gradually abandoned. If there has not been a release in the last 6 months, I would avoid it.
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