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 126.96.36.199 for Primary DNS and 188.8.131.52 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.