I had the same problem with cygwin setup - it used to fail in getting the mirrors.1st file from http://sources.redhat.com/cygwin/mirrors.lst . I also found setup.log.full contained line getUrlToStream failed!. I have found that the error maybe caused due to Kazaa Lite - if you use Kazaa lite and use it's supertrick to disable pop-up ads then check the HOSTS file(no extension) located in Windows folder. I found that http://sources.redhat.com was looped back to 127.0.0.1 in my case and that's why got the network error with setup. Once I deleted the line(s) containing redhat's web address, the problem was solved and setup was up and running again.
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