So, not sure if everyone else has had this issue, but I've worked on a dozen N3DS units to install Luma using the 3DS Guide and I seem to run into this issue on the USA units. BUT, I have discovered a fix that is quick and easy and hasn't failed me yet to the point I feel comfortable writing this.

If you're at the step where you need to update your N3DS and it's telling you that an error has occurred, it's okay.

Simply reboot the system and follow these steps:

1. Go to System Settings
2. Go to Internet Settings
3. Go to Connection Settings
4. Go to your connection(usually Connection 1)
5. Go to Change Settings
6. Click the arrowand go to DNS
7. On "auto-obtain DNS", click no
8. Go to detailed setup, and enter 8.8.8.8 for Primary DNS and 8.8.4.4 for Secondary DNS
9. Click save and perform the connection test
10. Go to System Update and you should now be able to update your system with no issues

To use FreeShop, just change the DNS setting back to auto-obtain.

Hope this helps anyone in my position.

 

[Jacklack3]

This is actually a common fix for some internet problems. It helps with problems connecting to the internet on the Wii U. But neat tutorial!

P.S: I think it can also work with O3DS's too.

 

[hii915]

wish i knew that, I had to use sysupdater, glad i didn't brick!