Glynn,
AFAIK, the only way to display both remote and local files is in 'Expanded View' which is a 'pop-out' view of the files panel. This view is 'undockable' meaning you cannot dock/ nest it in place.
You may consider filing a feature request for the same here though: https://www.adobe.com/cfusion/mmform/index.cfm?name=wishform
-ST