To install or apply any of the updates, the user MUST be connected to the internet. There is no way around this, and an internet connection is listed on the Installation Requirements.
If you connect to the internet via a Proxy Server, follow the instructions below. If you do not know if you connect through a proxy, consult your IT professional. The ONLY Proxy server type supported is HTTP. Socks servers are not compatible with Vectorworks.
Windows XP: This file should go in the C:\Documents and Settings\(Username)\Application Data\Nemetschek\Vectorworks
Windows Vista / Windows 7: C:\Users\(Username)\AppData\Roaming\Nemetschek\Vectorworks
(Note: The AppData/Application Data folders on Windows are hidden files. To show them: Tools > Folder Options > View > Show Hidden Files and Folders)
Mac: This file should go in the User > Library > Application Support > Vectorworks folder as well.