File Check In/Out with DWMX2004 and CT 2/3

I've got a site set up that has a Local Folder and a Remote. When I check out
a file in the Local and make edits I'm forced to Check In the file to the
Remote / Production Server. I don't want this to happen. My Contribute users
must first approve changes and make edits too.

How does one really use DW and CT in a collabrative enviroment?

Any suggestions would be great, and thanks in advance.