As of Now X 10.0.4, if the registration server is unreachable (either that server is offline or you are offline) then it bypasses the check during startup and the software loads. It then periodically checks and if either you are online or the server is online it does the verification then. The upshot is that if the server is offline (as it is today as we reconfigure for a new service provider) the software will continue working.
John Wallace
Now X Tech Lead
President, Now Software, Inc.