You cannot disable automatic updates when first installing a game from DVD.
While you may not notice it on a high-speed connection, watch your bandwidth usage with a monitor. Steam may not "pop up" advertisements, but it downloads them constantly so long as there is any available bandwidth and there is any advertisement that you haven't already downloaded to your machine. The Steam client greedily claims priority over bandwidth, for that matter -- easily observed when you aren't lucky enough to have much in the first place.
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