Text can be copied to/from the Hosted Server with cut/paste.
To save a file from your hosted service back to your desktop, when you are presented with a file browser dialog - select your computer name on the left:
Then, browse your local computer disk with the window on the right. Common locations for items:
C:\Users\Your User name\Desktop - Your local desktop
C:\Users\Your User name\Pictures - Your local pictures folder
C:\Users\Your User name\Documents - Your local documents folder