If you have a seperate router which your cable modem is plugged into, try plugging your computer directly in to the cable/dsl modem, visit a few web pages to make sure you're connected, then try to Live Update again and see what happens.

If your router is built into the cable/dsl modem you will have to get in and see if you can turn off the firewall then try to Live Update again.

Activesync won't affect your ability to Live Update, that will only affect your ability to download to the remote.