Help Required in Setting up Transactionl Replication

Hi All,

    I am new to Replication concepts and need your help in setting up the Transactional Replication.

1. Is it possible to have all three components of replication(Publishser,Distrubutor,subscription) reside in the same server?

2. I have the following scenario and please help me how can I achieve this?

I have 2 DBs (stage and live) in the same server.

I always used to process and update the stage DB and live DB is used for UI with limited operations.

Now I want, at the end of the day, to copy few tables from stage to live(Currently we are using .net code to do this).

Thanks in Advance.