Sorry, I don't understand your question?
You can install an update to your installation from any location (it's just
code that runs on your computer from a storage resource, whether the source
is local to you machine or not).
If you are talking about slip-streaming a Service Pack into a network
installation then I suggest that you have a look at the following website:
http://unattended.msfn.org/xp/office2003_advanced.htm
Very nicely laid out site and it seems to be pretty accurate as well.
Cheers,
Franksta.