move drupal 6 to localhost

I am upgrading drupal 6 to drupal 7 on a production website (on www.)

how can I test by moving to localhost and duplicating the database

which configuration file do I need to edit
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This article gives provides a manual for upgrading from version 6 to 7.
upgrade.txt is your friend, use it: you can the file at the root of your Drupal 7 installation, and dedicated upgrade files may be found in each module folder.
Read this for more info about upgrading modules.
As for running the upgrade on a localhost, you can play with it as much as your patience allows you, since you can always restart the process. You can start by only changing the data in the sites/default/settings.php (provided that you've crated the database and moved the data from the production site.
Good luck

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