Hello Ron,
Terry's blog (link below) is really the best options for trying to get the update to install:
community.dynamics.com/.../tips-to-install-the-u-s-payroll-tax-update
That said, we don't have a listing of any permissions required. It is important to remember that this is calling various items to actually update SQL and connect to a website, so the permissions can be a bit odd.
Since the update completed, there is likely just some odd issue with the tool attempting to query the server for an update after you complete yours. The network is likely blocking this, and that is where the error is coming from. If the manual update worked, I am not sure there is much of a need to dig deeper.
Best options would be a Fiddler and Procmon to see what is being blocked.
Fiddler:
Download Classic Fiddler from the web: www.telerik.com/.../fiddler
1. Open Fiddler, In Tools->Fiddler Options->HTTPS, check “Decrypt HTTPS traffic”.
Click “Yes” on the prompt for trust Fiddler Root Certificate.
Click “Yes” to install the certificate.
Click “Yes” to confirm.
Click “OK” and “OK” to back.
2. Reproduce the issue
3. Stop Fiddler Trace: File->Capture Traffic F12, Save trace: File->Save>All Sessions. Save the trace out as .saz file
ProcMon:
support.microsoft.com/.../how-to-use-process-monitor-to-troubleshoot-system-errors-that-are-caus
