Rh11 does support projects being on a network although the OLH does state it will depend on network traffic. However, I can confirm that it is important that the project is first upgraded from the local copy that you had with previous versions of Rh.
Surely if you upgrade the project locally now, the whole point of linking is that changes to the source documents get applied when you then update the links? I'm working on the basis that the links will still be good on upgrade when done locally.
After that you could try moving the project to the network again. I have found that for most things it's just a bit slower. Heavy tasks like generating an output will take longer and only you can find out how much and whether that is acceptable. Working locally will always be quicker but some organisations don't like that.
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