Hi Jamu,
If you register the form locally, then auto-update feature won't work and there are some security concerns: you are either full trust or restricted, both of which have drawbacks.
My recommendation would be to publish to a website using Domain Trust and have people open the form by navigating to the web site. Good luck.
Patrick Halstead [InfoPath MVP]
InfoPathDev
Patrick Halstead
Project Manager at Qdabra