snickerson:
Our team definitely looks very closely at Enterprise installation measures, while trying to keep a careful balance of user Privacy rights and "Informed Consent" agreements before passing any information to our servers.
We do suppress dialogue boxes (that prompt for proxy credentials, etc) but with the caveat that in these cases, we do not send any information to our servers.
WGA Notifications is not designed for enterprise deployments, which is why you do not see our program availble on "Security Tuesday" or on WSUS.
Internet connectivity is NOT a requirement to run WGA Validation nor WGA Notifications. :)
-phil