Hi Dean,
Did you try listening to MoH after installing? There have been several reported instances where the error appeared even though the file installed correctly.
The error is a general network communication error. Make sure that your PC running the Configuration Utility can ping the Cloud (ciscosbs.com). Next Log into the Configuration Utility and go to Status-> Support Tools -> Ping and see if the UC320W can ping the Cloud (ciscosbs.com)
Chris