the "file://" url protocol can only be used to locate files in the file system of the local machine. since this html code is interpreted by a browser, the "local machine" is the machine that is running the browser.
if you are getting file not found errors, i suspect it is because the file is not found. however, it could also be a security limitation of the browser. some browsers will not let you reference a filesystem file from a non-filesystem html page. you could try using the file path from the command line on the machine running the browser to confirm that this is a browser limitation and not a legitimate missing file.