Hi
Sure, that should work just fine. I'm not sure what you mean about using a "local geocoder", but if you've got your own internal geocoder with a REST-based API, it should be fairly easy. If it's based on SOAP services it will be a bit more complicated, but still doable if you're not afraid of tackling some XML.
There are also a couple of custom transformers in FME that you could download and look at for inspiration, e.g. the GoogleGeocoder.
David
If you want to include an attribute value in the URL you shoud use @Value(attribute_name) instead of @attribute_name, maybe that's the cause.
Another thing to keep in mind is that you'll be hitting the service once per record, so you may need to slow things down by using a Decelerator (the GoogleGeocoder needs this for example, as it's metered, your own service may not be)