Yep, you're correct.
This is where test servers (fully-featured freespace in my case) come in handy. Failing that, you can publish to a sub-folder that you have created, but perhaps we shouldn't get into sub-folders, based on past experience! ;-)
Suffice to say you can publish a NOF site absolutely anywhere and to any sub-folder and it will function normally: NOF's dynamic publishing does the hard work.