Or just change the command line options you pass to Gallery Setup, I think you just add the -remote option, but I kind of skipped over the options that didn't involve installing locally, so it might be more complex than that. Both methods work, but this is the method I found first and it just works.
If anyone was wondering, I found this
PDF. It's for version 9.7, but the Gallery Setup command line options are still the same for 10.6, didn't check how relevant the rest of the content is. It has all the command line options for installing locally, using a share, downloading the galleries instead of pulling them from a share to install locally, etc.
As long as Smart doesn't change how this works, I like using the Gallery Setup install. It provides a single command (granted it's somewhat long with the options I pass to it) to copy the files to the local drive and register it within Notebook and takes less than 15 minutes to install. I don't know the exact time as I've only run it in the batch file along with the Notepad 10.6 install and my whole batch file takes ~15 minutes to install the drivers, Notebook, ensure the Flash components are at least the minimum required for the Flash based stuff in Notebook, install the Essentials for Educators gallery and the Lesson Activity Toolkit. The only way I'd see switching to xcopying all the files over and then importing the registry settings would be if it was significantly faster, but the part that seems to take the longest is copying the files over, the "installation" (registering them with Notebook via either the Gallery Setup or registry settings) takes almost no time at all. Six in one hand, half dozen in the other really.