You need to use the local wallet, this is because you are pointing your "UpdaterAddr" to  127.0.0.1, aka localhost. I don't know if it would be possible to mine with a online wallet. (Ask daWallet, Luxe, Blago, etc. They are the ones making the mining programs.) I have always assumed you need a local wallet (Also referred to as a node) to get mining information and to publish your blocks. (Like POW and POS). If you want a fast sync you can download the blockchain from http://db.burst-team.us. This is one of the advantages of mining to a pool, they are running the local wallet and giving you the information you need.

I'm pretty sure your config is ok, burst's port is 8125 and you need to point to localhost (127.0.0.1 or localhost). I also assume the path to the plot files are correct.