Does the closest server rule affect the content repo portion of the client acting as a Satellite server?

In other words, if I say subnet closest server rule is PC1234 and PC1234 is, am I creating a loop so that the content repo is looking to itself?

The reason I set satellite servers at all my remote locations on Tuesday. There is 1.5GB of content to copy over shared 64kb links. As soon as I created the closest server rules (about 90% of the content copied) all of the WAN link utilization charts dropped from full to what it normally looks like--- for about an hour. The content repo stats on one of the Satellite's show the device talking to itself under recent history. I don't see the Synchronization Status moved, but then again this is a 64k pipe.