Hi Jangel
I started a thread here several months ago asking for input about the Local Church. There are some interesting responses there. At the time, I was doing some research on the Local Churches, Watchman Nee, Witness Lee, and their teachings, because my boyfriend grew up and currently attends their church. I compared their core teachings against multiple respected translations of the Bible, I had discussions with my pastor as well as elders from my boyfriends church, and I attended the young adult's meeting of their congregation for several months to get some first-hand exposure to their teaching and practices. I also took various other opinions into consideration, such as the link you posted above from the Christian Research Institute. Of course, I prayed fervently the entire time.
After reviewing the teachings the Watchman Nee and Witness Lee, my first impression was something along the lines of "what in the world???" because the way they worded some of their ideas were very strange. HOWEVER, after I cross-referenced their material with some of their other teaching, I came to understand that for many things, they simply had a very unique way of explaining some of the same ideas that I have believed for years. It is my belief that part of the reason for this awkward wording may have been the language barrier: both Watchman Nee and Witness Lee are native Chinese speakers.
My pastor joined me in my research, and when it came to the basic, fundamental aspects of the Christian faith, he could find nothing unbiblical in their teaching. There are some differences in some of the more outlying, less important matters, but these differences are no larger than the differences between some of the more "mainstream" denominations.
That said, these are my personal observations. Don't take my word for it.
I am no expert in studying the Bible. I did the best that I could to remain impartial, I tried to compare their teachings against the Word of God, I brought in the counsel of wiser Bible scholars such as my father and Pastor, and I prayed for discernment.
Currently, I still attend the young adult meetings and quite frankly they are the highlight of my week. Their church is a beautiful example of the church described in Acts. I am blessed to know them.