Oops, I'm afraid I did. I understood that I could edit our website up on MobileMe by using the same Domain file. I changed the read/write permissions of the Domain file residing on another user home directory path and actually did start editing from my user account. I continue my confession with upon once publishing, an error occurred with a report window, which closed iWeb way before a proper closing sequence. I believe that killed the Domain file in some way. I knew I was in trouble when it wouldn't even work from the owner's user account.
I ended up falling back to the backup (thank you, Time Machine) and once the new Domain file was in place, it worked. I'm not quite sure I'm going to repeat the read/write drill again as it may be as you are alluding to, the cause for the crash and burn error report.
Thank you for responding to my plea for help.
LESSON: Perform regular backups.