OK. I heard back from Ulf at Celemony. Here's what he said.
"You can always download the latest Melodyne update from your Celemony user account. (4.04.001) The online connection should only be necessary to activate Melodyne. Once this is done, Melodyne should run fine offline."
and this...
"the software has the update check build in. If a user decides to work offline, that's bad luck in this case."
Here's how I interpret this:
1. Melodyne needs an online connection to be activated but not to run. There should be no reason to 'reactivate' Melodyne after an update.
2. If 'online', Melodyne will check for updates. If you run Sonar 'offline' you'll need to manually DL an update from your Celemony account.
There's two little things I think should be addressed by Celomony. 1. Some kind of notification when there is an update. 2. Some kind of "Melodyne Version Designator" on the user account so when checking you would know if a newer version is available. Ulf liked #2 so we'll see.
Most of you probably already knew all this but for those who didn't, I hope it clears things up. I'll post anything else I learn.
Paul