Same problem without a firewall on even.
As per the info listed in the Common Problems thread (http://www.wowace.com/forums/index.php?topic=8298.0) two things are not true:
the first, which i think is just an error in the thread is the temp directory is not at:
XP: C:\Documents and Settings\***\Local Settings\Application Data\Temp\WowAceUpdater
but more importantly even with deleting the temp directory found at:
C:\Documents and Settings\***\Local Settings\Temp\WowAceUpdater
Same problem for me.
Yes same issue here as well
"latest.xml" and "latest-noext.xml" are not getting created