Ok..i got the funny ip part..so here is what i have done.
1)Applied a NAT rule from src 192.168.96.0/24 towards any with a hideNAT (Public IP)
2)tried curl_cli updates.checkpoint.com and i am able to resolve it from the VS
3)ran unified_dl UPDATE ONLINE_SERVICES
however..after doing all this i still cannot see last_resvision.xml being created in #CPDIR/database/downloads/ONLINE_SERVICES/1.0 of the VS
just one thing which i suppose may be an issue..i have a proxy configured in SmartConsole/VS0.. VS2 cannot reach that proxy..is vs2 trying to reach internet via Proxy even when a direct NAT is available ? any way to get around this.