I'm aware of the age of this thread. Apologies for doing such a horrible thing of posting in an old topic if it destroyed your life! But I've just run in to this issue installing old development software for an old game (UDK 2009 beta version) and found a solution. The solution for me was clicking the browse button and it opened right up to the location of where the vc_red.msi file was. I just clicked on it and the installation finally completed instead of giving the same error reported in this topic about it being on a local network that couldn't be accessed. I did run the installation exe as administrator when this solution occurred. Without running the installation file as admin when I got the error it wouldn't find it but when I did run it as admin when I clicked the browse button the file was there.
I attempted finding the file to upload it somewhere for anyone else having this issue but a file explorer search didn't find it. I'm baffled by that but it kind of fixed it self.
Run the installation as admin and if you get the network error click the browse button. Hope it's there for you as it was for me.
Hope this helps someone that finds this thread searching for a solution to this issue.
No solution was here so I hope I don't get blasted for posting in an old thread. I just had this same issue 6/23/2021.
Having "a" solution here would have been helpful. A solution is here now.