OK I am home now
This doesn't look good.
http://cod4boards.com/cod4-server-support/125796-mac-cod4-server-question.html
In COD4 multiplayer on Mac you have "start new server" then under "Dedicated" you have 3 selections, LAN, Internet, and NO. I interperet that as meaning:
1. "LAN" only server, a dedicated LAN only server; console comes up
2. DEDICATED "INTERNET" server only; hence the console comes up.
3. "NO" - means it's not a dedicated server, but it is available to others on the internet.... with a catch. If your machine IP is not the same as your PUBLIC IP (you have a local IP and are behind a router or such) then no one will see the server unless you port forward that port to your local machine through a router. But actually everything I am reading says this is LAN only and allows you to play/host locally with friends only.
I am not 100% sure if selecting "NO" is making the server available to others on the internet - sorry.
Does that make sense?
What is messed up is it appears we can't run a dedicated server and then run another instance of COD4 and just connect to it to play. Probably could if we had a virtual machine running and had COD4 server on it though

I know to try this I would run Ubuntu Linux under Parallels or virtualbox or Fushion, install the COD4 Linux dedicated server (a free download) in the virtual linux box, fire it up and start testing. A lot of work to test that out though.
Could turn an old PC into a linux box as another option, run the dedicated COD4 server on it and share that. If its just a couple players you won't need much CPU and memory. It can be setup to just bootup headless and you ssh into it to maintain it. I used to maintain a couple linux game servers in the day. This would also work if you wanted a LAN only game pretty good, as the linux box could be hooked to a router or switch and everyone just hook into that... either use manual IPs or have the router or linux box act as a dhcp server. We used to do this for LAN parties all the time w/ upto 20 people.
Sorry can't be much more help, but I learned something about Aspyr's COD4 port I don't like.
EDIT: Just read your last question:
so, how do I play on the machine that is running the server?
Doesn't look like you can unless you setup a virtual machine, don't know what your hardware is, but this may be somewhat taxing on the machine.
OR maybe select NO and have to be behind a router that port forwards the public IP

ort to your local machine???