What do you mean by a Windows 2003 Server network? Is it a domain environment? Or are you running a firewall on the server? Can you connect the PC directly to the router?
The 0013 error indicates a problem with the file list generated on the local PC used to determine what files need to be downloaded for installation.
See this post for the KB article to troubleshoot install problems - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=1588602&SiteID=2
-steve