Dan,
You can distribute the agent update files from a LAN server instead of the KServer by assigning a LAN Cache to the endpoint. Use the Agent > LAN Cache function to create a LAN Share on a server. Then use the Agent > Assign LAN Cache function to assign the above server to the endpoint. When the agent is updated, the files will distribute via the LAN Cache instead of the KServer (KServer will only be involved if the LAN Cache doesn't have the appropriate files, which will get updated on the LAN Cache for future distributions).
Brande