Hey Joe,
It should let you go ahead and go through the installation process. What I would do is choose the Windows Update option as your upstream server, and then on the screen where you choose "Start Connecting" just let it run until it eventually fails and then proceed through he installation. This should at least get you through the installation. You will of course want to make sure you have it set to sync manually so it isn't there attempting to sync on an internet connection that doesn't exist.
Hope this helps!
Chris Sanders - MCP, CWNA
http://www.chrissanders.org
http://www.keeforce.com