Could it be that your computer is doing something else? Did you follow the instructions? Close all other programs?
I'm not good with computers but if it is that, maybe also unplug it (or disconnect) from the modem or router. It sounds like there's a communication loss with the engine?
I would expect there to be some kind of error message otherwise.
I would connect the TIU to a short piece of track and not use the layout. Nothing else connected.
It is posted to use DC power when working with PS3 sound files.