No. You call up the number on the web site and they will give you a Password so you can download the software. No internet connection required when you use the software.

As far as getting the actual ATP, I did it locally where I live in a Seneca and an FTD. Even though I got my ATP paid for, I got away with it at a pretty reasonable cost. The FTD I used was a Precision Flight Controls set up as a Turbo Seminole @ $45/hr. A lot of the actual ATP ride can be done in the Sim, except the Single Engine Approach to Land and one or two other things. Look at the ATP PTS. The hardest part for me was getting back into flying dial gauges, using a Garmin 430, flying DME Arcs without an FMS, etc. I spend about 5 hours in the FTD doing approaches and maneuvers and about 2 hours in the plane before I took my checkride.