Same thing happened to me with the "network error"message. Glutton for punishment that I am, I went ahead and installed anyway. Worked like a champ. More good news is that none of my POI data was erased. My home address was still set correctly, and my favorites were all still there!
I used TomTom HOME and it just installed right over the North America map that was there. I didn't have to delete anything.
It was a very easy update, if you ask me! Don't worry about that "network error" message, mine installed just fine without logging in first.
I think a lot of us are going to have different experiences if we own an older GO device. The map folder on the TomTom GO700 is a completely different name, so the update will not install over the old one, and instead simply reports that there's not enough room on the hard drive to install the map update.
I ended up having to delete my old North American map file first, which resulted in my Favorites, home location, etc., being deleted. The only thing that stayed put was the 3rd-party POIs that I added, but since they were in the old North American Map folder, the new map update doesn't know anything about them. I moved them over to the new North American folder and now they show up. I'm going to try to copy my favorites, etc., from backup. I'll do a search on the forum to find out what filename that's stored under.
My update wouldn't install until the "network error" message was resolved, since it couldn't access the TomTom website to verify the product code was valid.
There's also a LOT of different options for installing maps. There are maps by state, groups of states, regions (NE, NW, SE, SW), Canada, Alaska, U.S.A., and one big North American map, too. It can be a little confusing to upgrade because it's not all that intuitive to figure out what you actually need to install. For a minute or so there, I thought that TomTom had returned to individual state files and didn't offer a big continent file now.
So far I'm VERY happy with the additional roads added for my area. I now don't live in a field -- my house is actually on a road! They also corrected about 1/2 dozen major interstate intersections that were changed about two years ago, and added a lot more POIs, even some that are rather new (like less than a year old). Just from what I've seen thus far, this update was well worth the $50 -- at least for my area of the country (NE Florida).