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To update the firmware, you need an internet connection with the update server of Wibu Systems. In many cases from inside a network, this connection needs to pass a proxy server.An automatic way to setup this, can be found in:http://vision-traffic.ptvgroup.com/faq-files/Overview_CodeMeter.pdf - section 6.4The proxy server can also be set manually in the CodeMeter WebAdmin:Systemtray -> CodeMeter Control center -> WebAdmin -> Configuration -> ProxyYou might copy the settings available from:Control panel -> Internet Options -> Connections -> LAN settingsWorkaround: Try to perform the update on another computer, or from outside the network.