hi. no that option allows you to run CarnivorePE on one machine, and run a client on another machine which connects to the first machine. it's just a security option. you should keep it unchecked your case.  
 
there's no built in way to ignore traffic from other machines. you'll have to do that in your client. simply filter out all IP addresses in the to or from field that aren't the IP address of your machine.  
 
good luck,  
 
//RSG