Although I haven't installed an agent on a hardened ATM, I think I can help figure out where the issue is.
Does the agent UI show errors when you attempt a check-in or update binaries?
What errors do you see in the agent UI when it attempt to download files?
Is the agent trying to go to the internet or a Distribution Server for the files? (set in the Policy)
You could take a look at the STDispatch.log on one of these ATMs located in the C:\ProgramData\LANDesk\Shavlik Protect\Logs folder. This log captures the data file and patch 'download' attempts and may give you a clue on what is causing the issue. I would suggest setting the logging level in the agent to 'All' if it is not already, this will give you a lot more information to work with.
(set in the Policy) For the test, I would suggest opening the agent UI and clicking on Update Agent Binaries, look for errors on the screen. Then open the log and look for the attempt to download files at the bottom of the log
When I try to update it just gives me "Update Failed: Attempt to download from no source."
Part of the problem is the hardening, because I can not map any drives. My distribution share is set up on a server, but since I can't map drives I am sure that is why I can not get to it.
Here are the logs, nothing specific in here.
2014-06-11T14:08:08.8653707Z 0438 I STDispatch.cpp:160 'C:\Program Files\LANDesk\Shavlik Protect Agent\STDispatch.exe' is starting, version: 9.0.634.0.
2014-06-11T14:08:08.8653707Z 1940 I STDispatch.cpp:62 Starting STDispatch service.
2014-06-11T14:08:35.4634174Z 1a3c I CommandLineTask.cpp:116 Beginning task [7f789357-3247-45b1-bad1-59f8c9b96a23] command line: "C:\Program Files\LANDesk\Shavlik Protect Agent\STAgentUpdater.exe" -checkin
2014-06-11T14:08:35.4634174Z 1a3c I Dispatcher.cpp:344 Starting task: 7f789357-3247-45b1-bad1-59f8c9b96a23
2014-06-11T14:08:36.8674199Z 1940 I Dispatcher.cpp:205 Completing task: 7f789357-3247-45b1-bad1-59f8c9b96a23
2014-06-11T14:08:37.1170203Z 1a3c I CommandLineTask.cpp:116 Beginning task [d9d3057b-cd35-47d0-8a88-282aaf17f877] command line: "C:\Program Files\LANDesk\Shavlik Protect Agent\STAgentUpdater.exe" -updateBinaries
2014-06-11T14:08:37.1326203Z 1a3c I Dispatcher.cpp:344 Starting task: d9d3057b-cd35-47d0-8a88-282aaf17f877
2014-06-11T14:08:37.3978208Z 1940 I Dispatcher.cpp:205 Completing task: d9d3057b-cd35-47d0-8a88-282aaf17f877
I agree, you will not be able to use a UNC based Distribution Server if you are unable to map drives. There is the option to use HTTP based shares, but you may run into the same issue. More here