I called Apple Support and with the threat of a service charge and two helpful fellows, I received help.
1. Copy and backup your Domain file somewhere, ie; thumb drive, hard drive. restoring from "Time Machine does work, but be careful you upgraded to "Lion" not so long ago.
2. When you change the name of the file, use "get info" to see the file's name and extention and change it there.
3. Now follow these directions.
In iLife 11 the Domain name can be changed from the original. Mine was, "Domain iac.site2". 1st thing to do: locate your "Domain File" then Back it up. Next, in "Finder" go to the "Go" drop down Menu at the top of the screen, hold down the "Option" key and "Library" magically appears. Select this and you are taken to the real "application support" where you will find an "iWeb Folder" with a generic "Domain" File. Copy your current Domain file into that folder. Delete the "Domain" File you found in the "Application Support Folder" and then bravely rename your wedsite's domain file back to, in my case, "domain.site2". The extension may be hidden so don't double it. I'm sure you have already copied and backed up your large website file somewhere so you shouldn't worry if things go wrong. Just keep track of the original file. After you have copied and renamed your website's file, you start iWeb from the launch bar or the application folder. Then you get to welcome back your hard work. Whew! it works!