yes, that does not make sense. What about copying all the files to a network drive and install it from there?
Or you could use/download the evaluation version from Lookout (www.ni.com/lookout) and develop with the latest feature of Lookout 5 (the networking technology of Lookout 4 and higher was drastically changed, and I would take advantage of that befor you try to use an obsolete Lookout 3.8 version).
If this fits you could order a Integrator Lookout version, which is pretty cool and useful for system integrators!
Hope this helps
Roland