Yeah, I started getting alerts about this, too. Only since I moved into a dorm, and it always tries to connect to the residential network server.
Now, I know I can just set Little Snitch to always allow this connection. A couple questions:
Can configd send any data besides that absolutely necessary for the network? Aside from the case of a hacked binary, is it ALWAYS "safe"?
What happens if it can't connect? I've denied it before (even several times in a row with the "until quit" option) and can't see any ill-effects.
Basically, is this something I should let connect to all servers, or just my University server?