You may receive an error message "Error 1606.Could not access network location” while installing the recent release of 1.1 security patch (KB2698023)  

How do you detect the issue
·         Open %temp% and look for the installation log for that patch - NDP1.1Sp1-KB2698023-X86-MSI**.log
·         Search for this error "Error 1606.Could not access network location”

Workaround
     If you find the above error in the log, then please install "Microsoft Fix it 50356" http://go.microsoft.com/?linkid=9708107
     If the issue still occurs, please share the log file NDP1.1Sp1-KB2698023-X86-MSI**.log for further analysis.

Another way to confirm this issue is to check the registry keys
·         HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders
·         HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders

For HKCU\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders\AppData

Correct value : %USERPROFILE%\AppData\Roaming
Incorrect value that may cause failure : %APPDATA%

If you find any other issues with the current patch please share the log file. You can provide me log files from the machine as mentioned below:
1.  Download and run this diagnostic tool from here: http://www.microsoft.com/downloads/details.aspx?FamilyID=e0da314f-6216-4a18-bc6b-7d29cf83af20&displaylang=en
2.  Share the log generated by this tool: %temp%\vslogs.cab
3.  Also please send us the information like OS and SP Level on this machine.