You can't update your materials library because the program is not able to connect to the main server. In order to fix the issue, go to Start > Control Panel > System and Security > Windows Firewall > Allow a program through Windows Firewall and check the box next to Punch! Home Design - Platinum. If you can't find the application in the Allowed programs and features window, press the Allow another program button, navigate to the installation directory, select the executable file and press Add.
After that, from the Advanced Settings select Inbound Rules > New Rule. Check the Port box, click Next, select All local Ports and follow the self-explained steps. Also, make sure that your security program doesn't block the connection. If the error persists, reinstall the program, close all unnecessary applications that may use your Internet bandwidth and try again. If it still doesn't work, it's possible that the main servers to be temporarily down or under maintenance. In this case you need to wait.